I am not the only one to claim that last week was something I have never witnessed before and that includes the 1987 stockmarket crash. 

Following top level talks this weekend there is at last, a package in place across europe which may and I hope does, extend into the USA which should bring calm back to the markets.  It should also get the flow of money pumping into the financial system.  Business and ordinary people will be able to borrow again.  It seems recession is inevitable and there will still be pain to pay for the decisions made by greedy bankers who arguably pushed capitalism to the brink.

These are times for all our clients to try and reflect yet again on their attitude to risk because it is in extreme times like these that resolve is really tested.  Please remember you have a choice of portfolios with Risk Levels ranging from 1 - 10.  This period has been a great test for all these portfolios and I am pleased to say they have all performed exactly as they should have done in extreme market conditions.  So, please check again that you are suited to your chosen risk profile and have a word with us if you are in any doubt.

Please Click Here to See the Performance of our portfolio (Risk Profile 5) of unit trusts and oeics over this last month.  The diversification story speaks for itself. At a time when the FTSE100 lost 26.6% the portfolio fell by 13.6%.

Diversification is the key to success and our portfolios major in on this aspect. The link to all our portfolios is here - just click.

I have attached below, three links which may help at a time like this.

The first - UK Stockmarket Recoveries details the history and recoveries of 5 previous crashes. The second - Keeping Faith - The 1987 Crash explains why it is important to focus on the bigger picture, which is the longer term.

The third,  Keeping Faith with Equities reminds us that whilst equities can be volatile, staying with them brings rewards. Often the best returns come in very short periods. 

At a time when inflation will nose dive and interest rates will follow suit, sticking to a well diversified portfolio should bring about very positive returns going forward.

Peter Waller - Investment Director