War in Ukraine: Should I be worried about my investments?

Markets always react to uncertainties – no matter if political, health-related or simply “different”

At the moment there are multiple questions that worry investors: 

• How will the crisis unfold further?
• How will the US and other global players like China react?
• What effect will this have on energy and oil prices?  
• How will potential sanctions affect trade?

That’s why you’re reading about it on the Selma blog – these events have a direct impact on the stock markets. The uncertainty spreads and the market (just like you, me and the rest of the population) reacts nervously.

Think back of the financial crisis, or the Corona crisis. Such events made the markets drop. However, in hindsight, one conclusion from historic drops in markets is that it often paid off to keep cool and stick to the plan. No crisis in the past lasted forever. While we cannot say how this crisis will unfold, we know that markets always recover in the long run.

What does it mean for my investments at Selma?

Don’t worry – you are in good hands. Selma is automatically taking measures to make sure your investments make it through a crisis.

Your plan is built for the long term. Crisis (whatever it is) is an inevitable part of long-term investing. If you invest for 10+ years the possibility of running into a crisis at one point is unfortunately quite high. Your plan has therefore already been built with the knowledge that markets do not always go up and Selma has taken a few steps to make sure your investment ride is as smooth as possible:

Selma monitors the markets 24/7 and chooses your investment plan based on long-term over- and undervaluations of markets. As many markets have become quite expensive over the last year, Selma already kept a bigger part of your growth investment in gold and silver.

Gold & silver as a protection

Money that Selma holds during overheating times in the markets gets invested in gold and silver. Why? Selma uses these precious metals to secure a part of your investments.

Historically, gold and silver have proven valuable as part of the investment plan. Their value, usually increases when other investment products lose. We can see this exact effect now as precious metals gain when the market goes down.

Once markets calm down (“correct”), Selma automatically rebalances your money.

3 tips for actions you can take

1. Make sure you invest your money long-term

This way temporary drops on the market pay off just like an end-of-winter sale: the same products are available for a fraction of the usual price! This might sound like a “too easy” comparison, but it’s how it works.

2. Stick to your plan and don’t panic

Yes, panic is contagious – even experienced investors within our own Selma crew aren’t immune! 😅 Invest your money regularly, monthly if possible. By investing on a monthly basis, you can get a stable average purchase price when buying investment products.

3. Double-check your risk profile

You can adapt the risk in your investor profile, in case you don’t sleep well due to the ups and downs. When lowering the risk, Selma will invest your money in products that grow slower and get impacted less in rocky times. Companies (and therefore their stocks) on the other hand, usually feel uncertainties first and therefore come with a bit more “action”.

Have also a look at how Selma is supporting the Ukraine and how you can help. Please reach out anytime in case you have questions concerning your investment with Selma. As always, the Selma crew will make sure to be of assistance as fast as possible. 👍