“January is a great time to reflect and to look forward.

January takes its name from the two-faced Roman god Janus, who looked both back to the past and forward to the future. That seems particularly appropriate today, when we are looking optimistically towards the future, whilst warily thinking about what we have left behind in 2020.

I will be the first to admit that since the start of the crisis I have been at the pessimistic end of the spectrum of expectations for economies and financial markets. Though thankfully, to some degree I have been wrong.

Though from the perspective of markets, I remain worried that we are living in a bubble and when I look beyond the pandemic, markets could get worse before they get better. I find myself constantly pointing out unemployment stats, government debt levels and highlighting businesses going bust.

We have to accept economies will be deeply scarred by the impact of COVID and they will take a very long time to heal.

When delivering client valuations the feedback I am getting from our clients is one of surprise when they see how well their Innes Reid portfolios have held up during the pandemic.

Clearly, this is not by chance and the valuations confirm we have been positioned correctly.

When viewing valuations, I stress to clients it is important to remember investing is for the long term, not a few good days, and markets don’t go up in a straight line. The global economy faces many challenges even once the pandemic has passed.

Investors are to some degree looking beyond COVID and we believe it is right to do so. We accept COVID risks have not been removed and a second wave is clearly upon us, but this is largely short term and our clients are investing for the medium to long term.

The market downside to date has been offset by ‘whatever it takes’ global fiscal and monetary policy support from national governments. Of course, once COVID is decisively put behind us, the consequences will have to be confronted and the accumulated national debts will have to be addressed. That, however, would almost certainly be as a result of a positive COVID outcome and so should not be feared today.

There will come a point in time when Governments will have to balance the books and taxes inevitably will rise.  As tax legislation changes, Innes Reid will be here to plan and ensure we reposition our clients as tax efficiently as possible.

It is so difficult to predict when ‘normal’ levels of economic activity will return, However, the clear catalyst for the recovery in Global Markets is the end in sight to the pandemic, as the vaccine rollout is now underway.

In years to come I think we will look back on the impact of COVID and the societal changes it has brought about. Our habits have changed and we won’t fully return to the way we lived pre pandemic. What we are witnessing is the unstoppable march of technology as we have all had to adapt to a different way of life and we are getting used to it.

Many uncertainties remain and we must fully expect periods of heightened volatility. Our message will not change, it is not timing the market that matters, it all about time in the market.

It is important to have an attitude that says ‘I’m not going to panic or be panicked’ and to stick to your plan.

Rest assured at Innes Reid we have never worked harder to ensure we continue to navigate our clients planning through this crisis and beyond.

Thank you for being a client and taking time to view this video.

Let’s look forward to a better 2021!”

Mark Reidford
Managing Director

Time to reflect and to look forward.

Time to reflect and to look forward – If you have any queries, please contact us by email: info@innesreid.co.uk or telephone our office: 01244 347 583.

For further business updates regarding coronavirus, please visit our designated webpage at: www.innesreid.co.uk/coronavirus/

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“Hello, for those of you that don’t know me, I am Mark Reidford and for the last 20 years I have been the Managing Director of Innes Reid.

I have received a lot of positive feedback from IR clients during the last six weeks with regards to how we have continued to communicate and deliver some reassurance during these times.

I believe it is vital to communicate with everyone regularly, to keep you informed of how we have adapted to the current working conditions to ensure our delivery of the services we provide are not interrupted and to provide some peace of mind to our clients when you need us most.

We are now well into the fourth week of lockdown and I wanted to update you and to do it in a different way by using video for the first time.

My thoughts being this demonstrates how we adapt and move forward. It is inevitable so many things in our lives will be different in the new post lockdown world and Innes Reid as ever will adapt to ensure we deliver great outcomes for our clients moving forward.

We are constantly being told these are unprecedented times and I know that it all feels very uncomfortable and uncertain at the moment.

Ongoing volatility will unsettle some investors and the urge to react to short-term market events can often be tempting.

I was looking forward to 2020 with a view to engaging with our clients as we celebrate 20 years of Innes Reid.

I was particularly looking forward to the opportunity to thank the clients that have been with Innes Reid from the start.

The list of clients I have to thank is long, as we have a large number of very loyal clients who have been with us since the early years and they are our best advocates, as we work in a results business and if we don’t deliver, clients will vote with their feet.

Innes Reid officially started trading on the 1st January 2000 and those clients that have been with us from the start have experienced a number of stock market meltdowns but they have stuck to their plan.

We launched at the absolute peak of the dotcom boom, the highest point of the market and we then suffered the full effects of the crash with falling markets through to March 2003.

We experienced 9/11 followed by the Global Financial Crisis and the Brexit vote June 2016, each event having a significant impact on markets and investment values.

Importantly, markets have always bounced back. We are confident markets will recover this time too, though we fully expect more of U shape recovery rather than a V.

We are also of the opinion in the short term we could well see global stock markets go lower as they work out the full economic effects associated with the coronavirus.

We fully expect continued market volatility until the markets can see beyond Lockdown.

However, it is clear centrals bank are fully committed to providing support which will underpin the markets.

You must also remember, volatility is a two way street; the biggest daily market gains often follow the biggest falls though, as always, there are no guarantees.

While there’s no doubt the coronavirus will continue to impact markets, that doesn’t necessarily mean long-term investors should be overly concerned.

Timing the market is notoriously difficult, even professional investors get it wrong.

Trading on news events can often lead to bad outcomes – panic selling often locks in losses, and jumping back into the market is hard to do.

Our message is consistent – volatility is a feature of long-term investing and it is time in the market that counts, not market timing.

Taking a medium to long term view, COVID-19 provides a buying opportunity. Clearly no-one buys at the bottom and sells at the top and as I said earlier, markets may well go lower in the short term, but if investing for the long term, today will be a great day to invest.

As the Managing Director of Innes Reid I feel an enormous sense of responsibility to all our clients. I don’t take for granted for one minute the trust that clients have put in Innes Reid and that responsibility rests heavily on my shoulders.

I am determined that Innes Reid and our clients will come through this crisis and we will justify the trust you have placed in us. I simply want to remind you we are here. If you have any queries with regards to your individual financial plan, do not hesitate to pick up the phone and speak to your adviser.

In the meantime, keep safe.

Thank you.”

Mark Reidford
Managing Director

COVID-19: An Update from Mark Reidford, Managing Director

If you have any queries, please contact us by email: info@innesreid.co.uk or on our normal office number:
01244 347 583 during office hours.

For further business updates regarding coronavirus, please visit our designated webpage at: www.innesreid.co.uk/coronavirus/

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