Volatility in World Stockmarkets

The last two weeks have seen rapid changes in equity prices around the world mainly caused by falls in commodity prices and uncertainty about interest rates in the USA.

The large gains made by investors over the past three years have come to a halt for the time being with this increase in volatility. Experienced commentators are describing events as a correction in market prices as a consequence of huge increases in demand for raw materials in the developing countries such as China and India.

We have been monitoring the effect of the changes on client portfolios and would like to summarise our current attitude to your investments.

In the year to 31st, April you will have enjoyed an average growth of 23% on your investments. This figure will of course depend on how long you were invested over the year and your own risk profile but it is an accurate indication.

During May the average fall due to the stockmarkets has been 4.9% which will still have left you with a very healthy gain of 18.1% over the last 13 months.

These changes are a timely reminder that the value of investments and the income from them may go down as well as up and is not guaranteed. They also underline the importance of our annual review when we ask you about your attitude to risk and personal investment objectives.

We believe that our approach to investing your money using a balanced allocation across a broad range of Asset classes is providing you with good protection against the worst of the effects of the current volatility.

Please get in touch if you want to discuss any aspect of your own portfolio.

www.argylefinancialgroup.co.uk