Wed 01 April 2020
Stay The Course
While we’ve been pleasantly surprised by the relatively low level of queries we’ve fielded from nervous clients in these “uncharted waters” in which we find ourselves, even the most laid back among you would be experiencing some degree of discomfort. After a significant “pullback” in share markets, it’s an understandable reaction to say “Enough is enough!”
The following message from our asset consultants, Innova Asset Management, explains why you need to resist the urge:
“For those thinking of liquidating their portfolio now, may we make a suggestion? Ask yourself this question: when will you buy back in? No-one can time the bottom of bear markets (without relying on luck), so they can only be known with hindsight. Furthermore, the bottom of the market is likely to occur when things look their worst – are you likely to buy in that environment? If you wait until everything looks like it is going to be OK going forward, it’ll be too late, market professionals will have already priced that back into the market and you will have missed the rally.
The bottom line is that investment management and advice is about managing risk appropriately and doing more than simply trying to top the quarterly performance tables. Helping clients achieve their long-term goals is the single most important thing and having better performance than the guy down the street won’t necessarily achieve that. Following a well thought out plan and accepting that there will be bumps in the road along the way is more likely to get you to your destination”.
As always, if you wish to talk through these issues, we’re only a phone call away.
Meanwhile, please stay safe!
Your friends @ Paramount.