Investments Down?It has been a bizarre week for investors this week, following the announcement of “reciprocal” tariffs and this unexpected news which brings mass uncertainty has disturbed the stock market We have seen the largest drop in value on the markets since 2020, and we know how disruptive Covid was to the economy However, there is no real reason to panic depending on what you are investing in. I am mostly invested in all-world index funds which tracks the global economy and I invest in this for the long-term As I still believe that the global economy will grow long-term and that the trade war that may be about to start will only have a short-term impact, I have been throwing as much cash as I have into the market This may seem counter-intuitive whilst the stock market seems to be “crashing” but when the overall situation hasn’t drastically changed all this really is is a discount on the cost of your investment A great example of this would be something that doesn’t fundamentally change; if you were in the business of selling books and they normally cost you £1 each but you can now buy the exact same ones for 90p you would if you knew that the demand for books would stay the same and that the price has decreased It is impossible to tell whether the markets are going to recover quickly or plummet further and as always capital is at risk when you invest I will continue to keep investing in global index funds regardless, and if you want more of an insight into my views on investing you can check out my FREE investing guide below
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