As 2021 gets off to a dramatic start, Paul Gilsenan, MD of PSG Wealth Management Ltd, looks at sensible financial steps when times feel truly unprecedented.
Not even four weeks in and already 2021 seems to have delivered a year’s worth of news, events and incidents. From the riotous storming of the U.S. Capitol Building, to the ramped up roll-out of vaccines across the UK, a third national lockdown, new strains of Covid-19 being discovered across the globe, and of course, the agreement and implementation of the Brexit deal – to paraphrase a popular saying ‘What a year January has been!’
So what has been the impact of all the news January has thrown-up so far?
While markets remained fairly resilient against the news from the US, many are looking to the long-term impact of Biden’s administration, particularly with both houses of Congress also Democrat-controlled following the results of Georgia’s run-off elections.
Of course, one of the biggest challenges to every country is the ongoing impact and future challenges of dealing with Coronavirus. From the number of self-employed considering alternative routes to unemployment levels, support packages and even the acceleration of online shopping trends, there is a lot to unravel.
The news of a third vaccine being given the green light for use in the UK has been warmly welcomed, however it is set against a backdrop of rising infection rates and the warning of further restrictions potentially to come.
With a last-minute Brexit deal agreed and a dreaded severe trade disruption scenario avoided, investors can now begin to see how the new 1250-agreement will play out in practice as opposed to theory.
Whether it’s the fallout from the American election, the Brexit agreement, or Covis-19, the story is far from over and will continue to have consequences for investors for a while to come yet, despite relatively minor impacts in January.
In each case, the soundest advice remains to consider investments as a long-term plan as opposed to short-term gains. Taking this approach gives investments the best chance of riding out volatilities the headlines can throw up and leave you in the best position to achieve your goals.
The value of an investment with PSG Wealth Management Ltd will be directly linked to the performance of the funds selected and may fall as well as rise. You may get back less than the amount invested.