There’s been a lot of news about the FTSE 100 reaching 7000, an all-time high and we have had a few queries off clients as to whether now is a good time to invest or withdraw money.
Important points to remember
Our reply to clients at the moment is to sit tight. No one has a crystal ball and while these highs have not been seen for a while, it is important not to make any rushed decisions. The actual increase has been driven mostly by the drop in the value of the pound, which is unprecedented.
Many portfolios while they include some FTSE 100 funds will also include other funds, to balance the portfolio, so the increase of the FTSE 100 while good news needs to be taken in context with the rest of the portfolio.
It’s also important to remember that the Index is just a guide. The fact that we are seeing an all-time high therefore is not a big shock. It’s more the fact that we have seen lows in recent years that is driving the news, rather than it hitting its maximum level. You should always seek advice before taking any action.
To sum up
In summary, in our opinion it is still better to invest for the long-term and to review your individual objectives before making any decisions. Our focus is to achieve the best returns for our clients over the long term and in the right way for our clients.
If you are unsure about anything or would like to review your current objectives, our team are always here to help. Email us or call us on 0333 456 0333 to arrange a review.