About Us
Services
Address
Business Hours
We will propel your business on a digital journey providing you with all the necessary cloud based software and expertise which will give you a smarter and more streamlined way of working whilst providing full clarity of where your business is heading.
We are committed to delivering the highest level of professional competence and expertise.
- Corporation Tax
- Personal Tax
- RTI Payroll
- Self Assessment
- VAT Returns
Please feel free to visit or contact us during the following times:
Monday-
*Please contact us if you require an out of hours appointment
9AM to 5PM
© 2025 Branagans Accountancy Services Ltd | Company Number: 5965462 | VAT Number: 917 8490 87 | Privacy Policy
Get in Touch: 01709 327 215
BRANAGANS
Accountancy Services Ltd
01709 327 215 | info@branagans.co.uk
May 2025 | How to navigate the stock market volatility
The first 100 days of the Trump administration have caused global concern, with Donald Trump's on-
The latest shock to the Dow Jones and the S&P 500 came from Donald Trump's threat to remove Jerome Powell, head of the Federal Reserve, from his post. But again, at the time of writing, he had walked back from that too. That said, things are changing so quickly at present, there is no telling what may have happened by the time you read this.
So, the only thing you can really do is work on the basis that markets are going to be volatile for the foreseeable future, and even if they have gone up in recent days, all it takes is for another shock from the Trump administration or elsewhere to shake things up once again.
HOW TO DEAL WITH MARKET VOLATILITY
As markets go up and down at pace, it can be tempting to make knee-
If you have, say, £150,000 in a portfolio, then seeing this fall by 10% for example to £135,000 could be very concerning. But panic selling is not the answer, as you will then no longer be invested and cannot benefit from any subsequent market rise. If you stay invested, then when the market recovers, you will see the value of your investments rise too.
This could take some time, especially if there is little in the way of good news for a longer period. But as the traders build in some elements of the uncertainty we are currently seeing into their forecasts, hopefully the volatility will decrease. Only time will tell whether this will happen.
USING THE VOLATILITY TO YOUR ADVANTAGE
One thing to bear in mind is that if you have money available to invest currently, then you are likely to benefit from the volatility we are seeing. In essence, when the markets fall, you are effectively buying your investments at a sale price and will see your money grow more quickly when markets rebound.
For example, let's say before the market fell, the shares or units you wanted to buy cost £10 each, and you have £100 to invest. So, you would be able to buy 10 shares at this price. But if the market fell by 20%, then the shares would fall in price to £8, and investing the same amount would give you 12 shares instead of 10, with £4 left over.
If the share or unit price returned to its previous level, then in the first example you would have £100 once again. But in the second example, you would have £120 when you had only had to invest £96 at the cheaper price and still managed to get two more shares.
INVESTING REGULARLY CAN SMOOTH OUT THE UPS AND DOWNS
The easiest way to make the most of the volatility is by investing regularly in the markets, as that way you can buy on the ups and the downs. Timing the market is very hard, and anyone who waits until 'the right moment' is likely to miss out on the best days to make returns on their investment.
Calculations from Fidelity Investments show that since December 31, 1992, if you missed the 30 best days in the FTSE100, you would have seen your investments grow by just 81% to April 7, 2025. Missing the five best days would have seen returns of 466%. But if you had stayed invested for the whole period from 1992 to April 7, 2025, you would have 763% more than you invested in the first place.
So, if you split your investment over a period of, say, 12 months, and drip-
Our Blog
