'Do nothing' is the predominant message to clients from advisers over the past few days, as Vladimir Putin's war on Ukraine risks pushing the world's Doomsday clock nearer to midnight.
The invasion of Ukraine and the escalation of Russian troops to a state of nuclear readiness has sent markets into flight mode, but for the majority of advisers, the message is to stay calm and carry on.
This is despite a stark move to defensive positions for one investment adviser - Brian Dennehy of Dennehy Weller, who is advocating for high cash positions, telling FTAdviser that "all other positions are fluff".
On February 24, global markets were shaken in reaction to Russia launching a full assault. As reported by FTAdviser, the EuroStoxx fell more than 5 per cent, the FTSE 100 dropped just over 2 per cent and the Vix volatility index soared to nearly 30 per cent.
But for Chris Daems, owner of Cervello Financial Planning, while the "tragedy in Ukraine" will have a "short-term impact on markets", he believes clients should stay calm.
In his latest client newsletter, he wrote: "If you’re a client of mine, you would have heard me banging this drum for some time. So, I’m sorry I’m going to repeat this but it’s an important message.
"Part of the value we add is making sure we remind you of what’s important and this includes every now and again reminding you that 'This too shall pass'."
In short, he said clients should "do nothing" to react to the current volatility, adding: "I’ve worked as a financial adviser and planner for over 20 years and have run my own business for over a decade. In this period our world has been impacted by some pretty momentous events.
"Now, if you’re a client of mine we will have already had a decent in-depth conversation about risk, volatility and making sure you’re comfortable when the inevitable ups and downs occur.
"We’re currently in one of these periods of short-term volatility but it’s important to be clear: your financial plan should always be focused on the best longer term strategic decisions.
"The portfolios we recommend are designed to do that. The worst thing you can do is make any changes when the world is in flux."
His comments were echoed by those of Yorkshire-based Neil Liversidge, principal of West Riding Financial Solutions.
He said: "These events are horrible, in humanitarian terms, and a setback in humanity’s long, zigzagging and sometimes retreating march from barbarism to civilisation.
"Realistically, there is little each of us can do as individuals, save being prepared for whatever sacrifices events demand of us. We do not know yet what those will be, but higher prices, higher taxes and lower living standards are a fair bet.
