World events can create rises and falls in the markets. As part of our robust investment process, we try to prepare for the unexpected, aiming to keep your investments on track over the long run.
Overlay
Investments
Middle East conflict: Staying calm during market ups and downs
Over longer periods of time (five years or more), investments such as stocks, shares and funds have the potential to give you higher returns compared to cash savings. But the value of investments can fall as well as rise. There is a chance you may get back less than you put in. Eligibility criteria, fees and charges apply. Past performance is not an indicator of future performance and should not be relied on as such. You should continue to hold cash for your short-term needs.
By Fahad Kamal, Chief Investment Officer, Coutts
Recent events in the Middle East have caused some ups and downs in the markets. With strikes and tensions rising in the region, you might have noticed changes like oil prices going up, and gold becoming more valuable.
These moves can feel worrying, but it’s important to stay calm and keep a long-term view when it comes to your investments.
As with any conflict, our thoughts are with everyone affected.
What’s happening in the markets?
Markets often react quickly to news like this.
Oil prices have risen because the Middle East is key for global oil supply. Gold is also rising since people often turn to it as a ‘safe place’ during uncertain times.
It’s normal to have ups and downs in markets. Importantly, it should not mean that you rush to make changes to your investment plans.
Putting things into historical perspective
History suggests that even serious geopolitical crises usually don’t have long-lasting effects on markets.
Staying calm and sticking to your investment plan is usually the best way forward.
How we manage your investments
Our investment approach is designed to handle situations like this.
We spread your investments across different types of assets and countries to protect you from big shocks in any one area.
We also don’t make quick decisions just based on the news. Instead, we focus on the bigger economic picture to help your investments over time.
What we’re doing now
We’re keeping a close eye on the situation, especially anything that might affect energy prices, inflation, or the global economy.
For now, our investment strategy remains the same, but we’ll keep you updated if anything changes.
If you have any questions about your investments or would like to discuss your plan, please get in touch.
Previous investment updates
Here you’ll find our previous investment market updates.