COVID – 19 : A Brief Update


The recent weeks have been a trying time for everyone; not merely limited to the financial sector, we have seen the impact of the Coronavirus Outbreak in our daily lives as non-essential travel is prohibited, places of work are closed and we find the supply chains of our shops and supermarkets are stretched. First and foremost, we wish you and those dear to you the best of health in this troubled time and hope that you remain safe.

The effect on the Financial markets has naturally alarmed many, but we maintain that calm, collected decisions and rational financial planning will see our clients through. Despite the impact of the crisis on financial markets, much advised investment is ‘managed’, meaning that it does not merely track company or market performance, but will be adapted to actively mitigate the effects of the pandemic. Furthermore, many investments are allocated into markets not suffering these same effects, and non-correlated assets, meaning that the impact to an investment will not necessarily match the figures reported in the news.

It is tempting to draw comparisons between this current time and the Financial Crisis of 2007/2008, but these two scenarios are very different; the Financial Crisis was a systemic collapse of debt and capital structures with global aftershocks that triggered a UK recession lasting five quarters. The effect we have seen in markets so far, while fast and severe, is the result of the temporary suspension of the machinery of the economy to slow the outbreak of the pandemic. One constant between the two is that, as in 2008, Molyneux Associates will stand firm in the face of panic throughout, and we will continue to provide stable and reliable financial planning for our clients.

In preparation, Molyneux Associates has put measures in place to operate a smooth, seamless service irrespective of the pandemic; our offices have been adapted to run a minimal staff providing essential physical services handling post and the central phone line, while the majority of the remaining administration staff have been equipped and instructed on how to maintain working from home offices.

Thanks to modern technology, many of our Advisers have been capable of working from home liaising digitally with the main office for years and are fully prepared to maintain your financial relationship or provide new financial services via phone or e-mail as usual – your adviser will be happy to arrange video conference calling with you if you should so wish, in lieu of a physical meeting in this trying time.

While the effects of this pandemic will undoubtedly touch all of society, be it in business or personal finances, we will remain stalwart and stable in our firm commitment to guide and aid our clients. At this vulnerable time, it is exceptionally important to be aware of the potential damage of risky financial decision-making in the face of panic and false information – many of those badly affected during previous financial crises were those who exited financial markets following a crash, only to be uninvested when the market quickly recovered shortly after. The world as we know it will return, as it has done before, and it is important to remain calm and rational through irrational times in order to be in the best financial situation when it does.

I and other members of the team will be keeping very close watch on the situation, and will be providing updates and information via our email newsletter and social media pages. If you would like to join our mailing list to receive this up-to-date impartial content as it comes, enter your preferred e-mail address below.

It is most important that we all remain safe and healthy during this crisis, so that we are all fit and present when normality can continue. I and the entire Molyneux Associates family once again wish you, your families, loved ones, partners and employees the best of health.

 

Kevin Watling & Martin Hill.

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