The volume of articles by analysts warning of another stock market crash is growing. This may strike you as odd, because a few short weeks ago, plenty of analysts were talking up the forthcoming 2021 stock market rally instead. There is only one thing investors can do when faced with such conflicting views. Ignore them and stick to their plan. Experts believe stocks and shares remain the best way to build long-term wealth for your retirement. It wouldn’t be uncharacteristic for the stock market to crash in this year. As we saw after the tech boom and financial crisis, a correction can last a couple of years. In the middle, there will be boomlets as well. Maybe we had one last year. That shouldn’t worry you. If your retirement is at least another 10 years away you have plenty of time to recover any losses. Also, remember you have the option to remain invested in retirement rather than scoop all your savings together and buy an annuity. This means your money could be in the market for another 30 years, and the longer the timescale, the lower the risk tends to be. There are good reasons why the stock market may crash again. There is a good argument that the euphoria after November’s vaccine breakthrough was overdone. We face a sticky route out of lockdown, as countries close their borders. But if markets do crash, you could see that as an opportunity to buy FTSE 100 shares at reduced prices. Possibly avoid the really high-risk sectors, such as airlines and hotels, but consider buying in banking, mining, technology, telecoms, energy, consumer staples, as well as lower-risk sectors such as healthcare and utilities. That might not be suitable for every investor, but it is certainly a robust possibility. Then simply hold on and let your dividends roll up, while waiting for the recovery. Like the stock market crash, that will come as well. They always do, given time.

Past performance is not a reliable guide to the future. The value of investments and the income from them can go down as well as up. The value of tax reliefs depend upon individual circumstances and tax rules may change. The FCA does not regulate tax advice. This newsletter is provided strictly for general consideration only and is based on our understanding of law and HM Revenue & Customs practice as of February 2021 and the contents of the Finance Bill. No action must be taken or refrained from based on its contents alone. Accordingly, no responsibility can be assumed for any loss occasioned in connection with the content hereof and any such action or inaction. Professional advice is necessary for every case.