Page 16 - DIY Investor Magazine - Issue 27

DON’T PANIC, BE PATIENT
The coronavirus might pose a more serious threat to the global economy than stock market setbacks in 1987, 2000 or 2008; we just don’t know yet.
But Spanish flu, the Great Depression and both World Wars were comparable threats to the global economy, and, in all cases, the crisis was followed by recovery.
There is no guarantee that it will happen again, but some short-term indications are encouraging. Immediately before the coronavirus caused the first lockdown in England last March,
I contrasted the reaction of bulls - or optimists - and bears - or pessimists.
Amid falling share prices and investor confidence, I wrote: “While the bears may briefly enjoy their picnic, I continue to believe optimists gain more from long-term market trends than pessimists can profit from short-term setbacks.”4
To buy these trusts login to your EQi account Select:
JP Morgan American (JAM) – GB00BKZGVH64 Mercantile (MRC) – GB00BF4JDH58
JP Morgan Claverhouse (JCH) - GB0003422184
On March 23, the FTSE 100 slumped to its 2020 low-
point of 4,993. Since then it has risen by more than 31%. Similarly, the Dow Jones Index of American blue chip or big company shares slipped to trade at 18,592 that day but has subsequently bounced back by 61%. New York’s NASDAQ index of technology shares did even better, soaring 80% higher than its 2020 low-point.5
Whether we look at the current crisis; those of the last 30 years; or even go back over more than the last century; we can see that share prices may fall without warning in the short term but tend to recover over the medium to long term.
Investment trusts diminish the risk of stock markets by diversification and can sustain rising income payments
to shareholders. So it makes sense to take a long view of investment, let dividends pay us to be patient and resist the temptation to panic.
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This is a marketing communication and as such the views contained herein do not form part of an offer, nor are they to be taken as advice or a recommendation, to buy or sell any investment or interest thereto. Reliance upon information in this material is at the sole discretion of the reader. Any research in this document has been obtained and may have been acted upon by J.P. Morgan Asset Management for its own purpose. The results of such research are being made available as additional information and do not necessarily reflect the views of J.P. Morgan Asset Management. Any forecasts, figures, opinions, statements of financial market trends or investment techniques and strategies expressed are unless otherwise stated, J.P. Morgan Asset Management’s own at the date of this document. They are considered to be reliable at the time of writing, may not necessarily be all inclusive and are not guaranteed as to accuracy. They may be subject to change without reference or notification to you. It should be noted that the value of investments and the income from them may fluctuate in accordance with market conditions and taxation agreements and investors may not get back the full amount invested. Changes in exchange rates may have an adverse effect on the value, price or income of the products or underlying overseas investments. Past performance and yield are not reliable indicators of current and future results. There is no guarantee that any forecast made will come to pass. Furthermore, whilst it is the intention to achieve the investment objective of the investment products, there can be no assurance that those objectives will be met. J.P. Morgan Asset Management is the brand name for the asset management business of JPMorgan Chase & Co. and its affiliates worldwide. To the extent permitted by applicable law, we may record telephone calls and monitor electronic communications to comply with our legal and regulatory obligations and internal policies. Personal data will be collected, stored and processed by J.P. Morgan Asset Management in accordance with our EMEA Privacy Policy www.jpmorgan.com/emea-privacy-policy. Investment is subject to documentation. The Annual Reports and Financial Statements, AIFMD art. 23 Investor Disclosure Document and PRIIPs Key Information Document can be obtained free of charge from JPMorgan Funds Limited or www.jpmam.co.uk/investmenttrust. This communication is issued by JPMorgan Asset Management (UK) Limited, which is authorised and regulated in the UK by the Financial Conduct Authority. Registered in England No: 01161446. Registered address: 25 Bank Street, Canary Wharf, London E14 5JP.
Material ID: 0903c02a82aab94c
4 Source: Citywire, March 10, 2020
5 Source: Bloomberg, December 4, 2020
DIY Investor Magazine | Mar 2021 16