Dominic Sheridan
The coronavirus pandemic made conditions particularly challenging for investors throughout 2020. After a sharp dip at the start of the health crisis, stock markets recovered relatively quickly, and some ended the year at record highs. Although many countries are starting 2021 with strict lockdowns as they fight against third waves of the virus and new mutations, investors are optimistic that mass vaccination programmes will allow economies to open more fully as the restrictions on travelling and socialising are lifted.
The rollercoaster ride reminds us of some valuable lessons about investing that stand the test of time. Perhaps the most important of these is that patience and commitment tend to reward investors over the long term. It can be difficult to hold your nerve when markets are in freefall.
Yet if you’d sold your investments during the worst days of the crisis then you’d have missed out on the strong recovery that took place over the second half of 2020.
The health crisis is also a reminder that the unexpected happens frequently, which is why it’s important to construct portfolios that can weather a broad range of different conditions. Within our discretionary portfolio service, we are able to adjust the exposures to different asset classes and geographies as the environment changes. We’re hoping that 2021 turns out to be a year with fewer surprises, and have put together this guide to explain what themes are likely to influence our investment decisions over the coming months.
Dominic Sheridan Chief Executive Officer
