Considering Volatile Autumn Stock Markets
Published / Last Updated on 07/09/2021
Should you move to cash and lock in profits and drip feed back in or should you drip feed out or should you hold with stock market volatility? September 2021 has already seen volatility across markets, bouncing up and down every day and the pressure is mounting.
The UK is suffering the effects of opening up and mixing with no social distancing with the Delta covid-19 variant in the wild. In addition, with children now back at school, more people commuting and not home working, things will get worse before they get better but the death rate is thankfully much lower.
The UK opened up ahead of other states as our vaccination programme was ahead but North America and Europe are now starting to open up with vaccine numbers up but economic sentiment is lower. US jobs data has not been good, US health advisers are also suggesting Delta will become more widespread during Autumn and German’s economic confidence indicators are low.
Markets are getting nervous, seemingly moving up in the East and down in the West one week and vice versa the next. This is clear indicator of uncertainty over the coming months. We cannot call it, professional investors cannot call it, fund managers cannot call it, commentators cannot call it.
You have 3 options:
- Hold tight, stay invested for the long term. This is what we are doing but you have to make your own choice.
- Transfer out to cash park immediately to lock in gains made in 2020/21 and then drip feed back in over the coming year. This will take advantage of some but not all profits if markets grow further, avoid losses if markets fall and buy back in cheaper if there are falls.
- Start to drip feed out to cash gradually locking in profits and some future profits but you may miss future rises for any drip fed out funds.
