Who to trust for advice?
It has been a rough couple of weeks for investment markets, but as I have discussed with clients one - on one, this is a temporary decline in a permanent uptrend.
For those who have been clients for longer than a few years will attest to, we have a consistent message when asset prices take a fall like these have done. Did I know when these prices would fall? No. Did I know they would fall? As I have told clients and as I have posted previously, we cannot sustain 25% returns year on year without a pullback in prices.
“This is a temporary decline in a permanent uptrend.”
I have only had 2 calls from investors, and neither of these investors are engaged with our ongoing services who have been concerned about prices. ( A good excuse to engage with us on an ongoing basis.) Most of our clients are aware but not alarmed. It is important as investors that you:
focus on your plan and confirm that your goals are still relevant.
review your asset allocation to ensure it is in line with your wealth management plans.
trust the process that has been setup with your trusted adviser and know that while the process may not be perfect, it is better than all the rest.
At times like this, many investors are distracted by media reports or sage advice from family and friends at say a weekend BBQ.
Check the following article where Jurgen Klopp, the much celebrated Liverpool Football Club coach, reiterates how his view doesn't matter much in regards to Coronavirus. He is simply a Soccer coach. His opinion shouldn't matter and he should be left to focus on his football team. He is pretty well saying, stay in your lane and focus on the areas that you can control.
The key here is to stay away from the noise. Know that there is a system and process for the attainment of your investment and retirement goals.
Your investment process should be disciplined, aligned to your goals and you allow the investment process to do it's magic even when times are uncertain, because this is when returns can be enhanced when you invest in the right manner for the right reasons.
If you have friends, family or colleagues who are feeling concern or uncertainty at this stage of their financial lives, we would be happy to offer a 2nd opinion and review their current position . We would highlight any changes that we think may help, but if they are on track, hopefully we can confirm that their strategy is sound.
