“Get the basics right” is the advice from Hargreaves Lansdown amidst Brexit uncertainty and a dip in global stock markets.
“Brexit uncertainty has crushed investor confidence – with optimism in the UK stock market now lower than it was in the middle of the financial crisis, or in the immediate aftermath of the EU referendum,” said Sarah Coles, personal finance analyst at Hargreaves Lansdown.
“…our research shows that investor confidence is at its lowest level since we first started measuring it in 1995.
“At times like this, it’s important to get the basics right: hold a good cash buffer, keep a balanced, diversified portfolio, and drip feed money into the market to take advantage of any dips.”
Ms Coles was commenting in relation to a report from consumer watchdog Which?, that warned of “immediate” and “severe" consequences for millions of people if the UK fails to reach agreement with Brussels.
The research shows more than three quarters of people said they thought it was likely that a no-deal Brexit would lead to higher prices for food and other items (76 percent) and delays at the border for travellers (75 percent).
Three in five expect disruption to food supplies because of hold-ups at the border (61 percent), higher energy costs (60 percent) and some flight restrictions (57 percent), while 44 percent said medicine shortages were likely.
“It’s not just investment,” Ms Coles said. “We also face uncertainty over issues like prices, the future of inflation and interest rates. This report shows just how nervous people are about what the future may hold in store for every aspect of their finances.”