Japan Disaster Investor Warning

Japan Disaster Investor Warning.

We have all seen over the weekend the dramatic events as they have unfolded in Japan.  Firstly the earthquake and tsunami and tonight the nuclear reactor explosions.  Our sympathies are of course with all those who have suffered.

Investment Warning: Not many clients but some of our clients have investments in Japanese Funds.  This disaster was of course unforeseen and Japan's market was strengthening so the destruction and subsequent market falls were unexpected.  We therefore feel it is better to offer at least some guidance now.

Already Invested in Japan (less than 3% of our clients)

• Existing Lump Sum Investments:  If you wish to be cautious ....  we suggest you switch out of Japan and move those funds to a cash fund as we think this market will be unsettled for a few more weeks.  However, it is difficult given that the market has already gone down and you may be better off not crystallising any losses by switching and should sit tight as markets will recover ..  if you are a higher risk investor then we suggest waiting for market recovery as it will come.  Particularly as companies will benefit from increased orders from central government for repair and restoration projects.
  

• Existing Regular/Monthly Savers and Regular Premium Pensions: You may wish to switch to cash for any built up funds but we suggest that your regular premiums continue to invest in Japan as they will be buying more units/shares at a cheaper price.

Not Invested in Japan (the majority of our clients) - INVEST SOON

• We suggest you wait and let the current situation with the nuclear reactor and other clean up operations settle.   Within the next week or two weeks you should invest in Japan or switch some of your existing investments into Japanese funds to take advantage of the lower market price and benefit from any susequent market upturn.

What to do next?

Silver/Gold and Platinum Clients:  Contact us and we will arrange any fund switches at no charge from us.

Bronze (No Ongoing Service Clients):  Contact your investment/pension company direct or contact us to arrange any fund switches.  Our charge for specific fund advice £50 + VAT per switch.

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