Phil Armitage, Partner
Phil has over 30 years’ experience at Redmayne Bentley. His career as a stockbroker has given him first hand experience of a wide range of market conditions, from the dot com boom of the late 1990s, through the global financial crisis of 2008, to the COVID-19 pandemic. Now, as a Partner of Redmayne Bentley, Phil oversees our stockbroking service.
For participants in financial markets, periods of volatility are a near certainty and need to be managed. Volatility is a cost of entry when investing. Even for calendar years of positive returns, financial markets retain the ability to experience meaningful rises and falls.
Thinking back to last year, the MSCI World Index, which tracks the largest globally listed companies, experienced a 17% decline, but finished the year with a positive 17% return. Periods of uncertainty can be triggered by a wide range of events, some more memorable than others, from the Asian financial crisis of the late 90s, Global Financial Crisis of the 2000s, and the Covid-19 pandemic. As for the most recent period of volatility, the causes and initial implications were covered in the March edition of our Market Insight publication. This edition is available to read on the Redmayne Bentley website:
redmayne.co.uk/publications
Navigating volatility
When markets are unpredictable and prices swing sharply during a day, there can be a temptation to act. Some investors may opt to sell, hoping to limit further losses. While others may be drawn to areas expected to perform positively, such as energy or consumer staple goods, which have traditionally performed better during inflationary periods.
Consider your options carefully
Selling can sometimes make sense, particularly if the reasons for holding an investment no longer seem appropriate. However, it’s important to consider how markets can fall very quickly when many investors sell at the same time. Acting in the heat of the moment risks locking in losses, leaving you with uninvested cash on the sidelines while markets recover.
Chasing momentum carries risks too. During recent tensions involving Iran, oil majors such as Shell attracted attention and, for some, delivered short-term gains. But when a ceasefire was announced on 8th April, prices fell sharply in a single day (-4.68%). This shows how quickly fortunes can change. Inactivity, or sitting on your hands, could also be an option.
Taking a step back, revisiting your long-term plan, and sticking with investments chosen through careful research can help you stay fully invested, with the opportunity to capture the returns generated by assets within a portfolio. Data indicates that an individual who remained invested in the FTSE All Share Index throughout the fifteen year period to the end of February 2026 would have experienced an 8.11% annualised return, reducing to 5.07% if the ten best days in this period were missed.
Although the findings have limits, as markets rarely move in neat patterns and good and bad days can cluster together. It does offer a reminder that trying to time the market is rarely successful, and that patience and planning often serve investors better.
Here to help
How individuals navigate periods of volatility and uncertainty is varied. Revisiting a strategy or longer-term plan is one potential options, while experience of such scenarios enables a more seamless navigation. Redmayne Bentley offers considerable depth and breadth across its network, from stockbrokers placing orders in fast moving markets, which can sometimes involve complex trades, through to investment managers navigating portfolios through volatile times, and financial planners supporting you with longer term financial goals.
If you would like to discuss your investments, financial goals or plans, or any of the investment themes within this edition of 1875, please contact your usual Redmayne Bentley office or executive.
Please note that this communication is for information only, and does not constitute a recommendation to buy or sell the shares of the investments mentioned. Investments and income arising from them can fall as well as rise in value. Past performance and forecasts are not reliable indicators of future results and performance. The information and views were correct at time of publishing but may have changed at point of reading.