Finances are a prominent concern for everyone right now. The spread of Coronavirus (COVID-19) is proving that it will challenge our financial markets and is causing a lot of uncertainty for investors, business owners, and plenty more of the population.
We know that many of our clients and partners have had questions about what’s going to happen to their finances in the next few months. So, we’ve done what we can to help inform people about what to expect.
How is it affecting the stock markets?
Despite efforts to price during this new risk, investors don’t have the experience analysing potential pandemics. As a result, equities have been volatile.
The falls over the last two weeks have continued. Global equity markets again falling in excess of 9% on Monday 16thMarch. This was the most significant one day fall since the financial crisis. As governments take action to address Coronavirus, markets are digesting the economic consequences as companies announce their responses to the impacts on their sectors.
Unfortunately, this means you should expect declines in your portfolios. But this is expected in this time. Such periods of volatility do occur approximately every decade. Indeed, the possibility of such losses are the primary reason that investors are compensated in the long term with a premium from holding equities.
Although it would be impossible to determine the bottom of the market, and volatility is likely to remain for the foreseeable future, history indicates that investors are rewarded from holding through such times.
How does this affect property and mortgages?
All major transactions are likely to slow as people become more cautious. Property will equally be subject to a decrease in activity. If you have property on the market or were in the processes of a purchase of a commercial property you should make sure to contact your bank and other parties involved in the transaction.
Banks have created allowance for people who are unable to pay their mortgages. Suspensions have been permitted but at the cost of a greater overall sum to eventually be paid. It is advised that you contact your bank to discuss this, especially if you are on a reduced income or have lost your job because of the current circumstances.
Unfortunately, the same security isn’t in place for people paying rent. If you rent your trading premises or are in a buy-to-let contract you need to speak to your landlord directly to negotiate flexible payments.
What additional support can Prydis provide?
Prydis continue to closely monitor the situation and make adjustments where possible for our clients. If you have concerns about your finances and need some advice, you can contact us to schedule an appointment with one of our advisers at 01392 432431 or firstname.lastname@example.org.
While this is a time of uncertainty and change, we will attempt to provide any security we can. The economy is struggling, but what is positively expected is that it will also make a quick recovery. We want to help ensure you keep your finances protected and well-managed until this time comes.