COVID-19 has turned the whole world upside down and many people have asked what must I do with my investments? All markets, local and global, has seen a significant drop in performance however this is nothing new when it comes to the investment market.
The peak of the All Share Index this year was on the 20th of January 2020. The level was 58 850.40. It then plummeted to a level of 37 963.01 by the 19th of March 2020. A total drop of 35.49% in just two months. Then it rebounded in a V-Shape to 49 874.51 by the 14th of April 2020, that is a bounce back of 31.37%. As of Friday 17/04/2020 the All Share Index closed at 49 134.65.
Yes but moving my money to a money market fund is always the best option in times of crisis, is a term we often hear in the investment market. However this is not always the best idea. Let’s take the crash of 2008 as an example, panic and fear kicked in and you decided to move your entire investment portfolio to the money market, as it provides you with safety and certainty. What if I told you that you would have had more money today had you stuck through it?