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How to prosper in a post-pandemic world

As we slowly get back to a new normal, we look at the opportunity for investors willing to change with the times.

Important notes

This article isn’t personal advice. If you’re not sure whether an investment is right for you please seek advice. If you choose to invest the value of your investment will rise and fall, so you could get back less than you put in.

In the summer issue of the Investment Times, I wrote about how two views make a market.

The issue focused on how having a different view doesn't mean you're right or wrong. The important thing is to make sure you don't sway to one side too much. Uphold the basic investing principle of holding lots of different investments for as long as you can, and you won't go far wrong.

While the investment principle of holding a diversified portfolio for the long term isn't going to go out of date anytime soon, the investment world is ever changing. And when the investment world changes, it's important to make sure you change with the times too. The pandemic has made this truer than ever before.

While we're making good progress in recovering from the pandemic hangover, it's unlikely to be all clear skies ahead. Inflation fears are mounting, energy markets have been stumbling and governments around the world are starting to look at how to claw back the piles of debt they've had to accumulate.

However, if you look past the pandemic, it's been fairly steady seas for stock markets for over a decade. It's worth reminding ourselves that investing does come with ups and downs, as you can see from the table below. Investing isn't an opportunity to make a quick buck – you could lose more than you put in if you're not sensible.

It might not be smooth sailing investing in a post-pandemic world, but as investors, that's what we should expect.

As we slowly get back to a new normal, we see opportunity for investors willing to change with the times. Don't wait for hindsight to tell us it was a no-brainer. Those willing to stick it out and evolve will likely be rewarded.

So how do we change with the times?

We don't have to look very far to help make investing in the future that little bit easier. It can pay to look back to the past, take note of what's happening today and take some of these lessons into the future.

HL celebrated its 40th birthday this year. In the autumn issue of the Investment Times, we've taken the opportunity to look back at how things have changed, how investing has evolved, what the future could hold, and how investors could prosper.

You'll find the issue full of investment ideas to take advantage of in a post-pandemic world. Remember there are lots more ideas on our website. The table below shows how sectors and different parts of the world come in and out of fashion at different times. Holding something of everything, with small tweaks to the areas you're most confident in is a sensible approach to growing your wealth over the long term.

Everyone's goals and circumstances are also different and investing isn't a one size fits all approach.

Remember, past performance isn't a guide to the future. All investments rise and fall in value, so you could get back less than you invest.

Annual performance across the major sectors (%)

Scroll across to see the full image.

Average fund performance across the major sectors, for 2011 to 2016

Past performance isn't a guide to the future. Source: Lipper IM, from 30/09/11 to 30/09/21, IA sector performance. *Full year performance data not available.

Scroll across to see the full image.

Average fund performance across the major sectors, for 2016 to 2021

Past performance isn't a guide to the future. Source: Lipper IM, from 30/09/11 to 30/09/21, IA sector performance. *Full year performance data not available.

READ MORE

Explore our Investment Times autumn 2021 edition for more articles like this.

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    Important notes

    This article isn’t personal advice. If you’re not sure whether an investment is right for you please seek advice. If you choose to invest the value of your investment will rise and fall, so you could get back less than you put in.

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