The Dangers of DIY Investing in a Financial Crisis

The dangers of DIY investing

People often make one of two mistakes when it comes to looking after their health and managing their wealth in times of crisis.

1. People find a way to talk themselves out of taking action

Just as it is easy to put off visiting the dentist or the doctor, many people will talk themselves out of taking action until it is too late.

2. Many unqualified people attempt to manage the situation themselves

The internet has many great uses including connectivity, research and information storage. However, as any doctor will tell you when it comes a health issue, you should always avoid self-diagnosis, without qualification. The same rule applies to managing your wealth.

Making hay whilst the sun shines

Following the 2008/09 global financial crisis, global financial markets have enjoyed the longest bull-run in history. This bull-run (continued period of market growth) began on March 9th, 2009 and is on the verge of coming to a sudden halt as global equity markets collapse across the board.

In the same period as the bull-run, we have seen a significant increase in the number of people attempting to manage their own finances, through DIY investing, with the aid of wealth management books, online seminars and unqualified financial influencers.

As a result of these two trends coinciding, many DIY investors have achieved positive gains on their portfolios as a result of unprecedented market performance. These results have – for many DIY investors – allowed them to believe their approach is robust, their knowledge is sufficient, and their portfolio is crisis proof.

The bull run is almost over!

Whilst financial advisors gain the most credit from clients during periods of expansion. Their real value comes when markets are volatile, and portfolios require protection.

Global markets are now in uncharted territory – we are currently bracing the effects of a global health crisis – stock prices of US companies are dangerously overpriced- Hong Kong is in political turmoil – The impact of Brexit hasn’t even started – the US China trade war is far from over – US/Iran relation’s remain sensitive – Tensions rise between OPEC, Russia and the US and finally, we in the midst of a global climate crisis.

If there is ever a time to seek financial advice to protect your portfolio, it is now!

To register for a complimentary portfolio review with a qualified independent financial advisor, please click on the link below.






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deVere Insights is a proud component of the deVere Group. Our company has always prided itself on leading the way in the sphere of wealth management. This website is in place to share information and expertise.

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