Covid-19 and Investments: Time Vs. Timing.

This is indeed a worrying time for everybody. The current pandemic is affecting our lives in many ways. We are going to show you the value of time when investing.

We refer to the Financial Crisis in 2007/2008. The following illustration from an article by Aviva shows the value of time after a downturn. It shows the growth of a €50,000 investment, 11 years after the financial crisis. This investment would have begun at the worst time possible.

The investment more than doubled 11 years post crisis. Of course this investment would have taken a hit at the time of the crash, but if this investor had panicked and withdrawn their capital when it decreased in value, their loss was finalised. Instead, by keeping calm and riding out the crash, 11 years on their capital has doubled in value.

The current pandemic is causing volatility in the markets. Volatility is unavoidable in investment. The key to successful investment is about time, not timing. Keep long term goals in mind and see past any short term fluctuations.

If you are concerned about your pension or investment, please get in contact and we can give you advice.

Finally we would like to wish everybody well in these uncertain times, we must all look out for eachother.