According to the FT “UK retail investors have rushed to withdraw money from investment funds this year, with net outflows in the first three months hitting £7.1bn, the highest level since the fourth quarter of 2018.”
Hargreaves Lansdowne says “The market reaction to the devastation in eastern Europe was extreme volatility, and while many investors took the opportunity to take speculative bets, many chose to take their money off the table and turn to the perceived safe havens of cash and gold”
And..” [Our] clients have also turned to multi-asset funds which prioritise capital preservation, outsourcing asset allocation in the face of market uncertainty.”
The good news for stockbrokers is selling makes money for them. The bad news for investors is timing. How do you get the sale price and eventual repurchase price at the right numbers and at the right time to make money? That is exceptionally difficult to call.
The headline shows that investors are driven by emotions. Investing over the long term needs more logic than emotion.
Every investor needs a well thought out strategy…if it’s yes, in the words of Mr Einstein…”Could you explain your strategy to a six-year-old”