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Endowments/investments

(4 Posts)
candle18 Sat 04-Apr-20 22:28:48

I have 2 endowments, one linked to my mortgage that have 3 years to go. I checked on one of them tonight and the value has gone down £6500. Is there a chance it will have time to get back on track or are investments going to be down for years?

OP’s posts: |
TeenPlusTwenties Sun 05-Apr-20 09:20:24

You might be better off posting this in money, but my completely non expert view is that it depends on how quickly we get this over with.
If after 3 months we start partial re-openings and then go gradually but successfully back to normal, I reckon you'll get most of what has been lost back.
If this drags on for a year with regular shutdowns etc then you may end up losing more money.
It also very much depends on how broad an area your endowment is invested in. if it is 'just' UK the risk is much wider than if it is spread broadly across the world.

KoalasandRabbit Sun 05-Apr-20 12:36:43

Would imagine it will be adversely affected until the situation is under control which may mean a vaccine which might be middle of next year. Often things do rebound quite fast after a crash but will depend how badly businesses have been affected and how quickly they will get back to normal. Would imagine it will have recovered some of its value in 3 years but not all, maybe 50%. It's a lot of guess work in predictions though and a lot of unprecedented events. Something like the FTSE 100 can do better than the All-Share as it self-selects the strongest 100. Some industries will be hit much worse than others.

KoalasandRabbit Sun 05-Apr-20 12:44:16

This article is US but gives some idea of how long markets have taken to recover in the past - it says over 20% takes 24 months on average (though current falls could be worse than that average).

www.cnbc.com/2020/02/27/heres-how-long-stock-market-corrections-last-and-how-bad-they-can-get.html

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