We discuss market volatility

Author picture

We discuss market volatility

market volatility
We understand the recent correction in share markets has raised concern and worry for many of our clients. In this video update, we address the current market volatility and discuss your best defence in these challenging times.

Our investment philosophy focuses on risk vs return ,focusing on the importance of long-term investments regardless of whether you are retired or building towards retirement. Your investment strategy is built to handle market dips and correctional cycles by having appropriate diversification across many asset classes. We expect corrections – we just don’t always know when they are coming. We also recognise that we have been here before as periodic sharp falls are regular occurrences in share markets. Over the last 50 years, even the worst market pullbacks rewarded investors for staying their course.

We expect to see many negative headlines during this time as the central banks globally try to keep inflation in check.  It is best to try to block this negative news flow out, as it only causes more harm than good and makes it harder to stick to your long-term investment strategy. Take advantage of cheaper markets if you can do so. When assets fall in value, they are cheaper and offer higher long-term return prospects; look for investment opportunities that these pullbacks provide.

Whilst the temptation can be there to chop and change your investment approach. History tells us this is often the worst thing to do. Making wholesale changes to your investment strategy gives you two chances to get it wrong. When to get out and when to get in. Hope is not a strategy – hoping you get this right is akin to gambling. The best defence is to have a robust strategy and stick to it.

We hope that this video and commentary provides you with some insight and reassurance during these difficult times.

In this short recording – under 10 minutes – we tackle the topics of:

• Why now is the time to remain invested.

• A quick investor-friendly overview of the events influencing markets.

• Previous market crashes and how we have been here before.

• Time in the market remains superior to timing the market.

• The long term is just a collection of short runs.

• Cash does not outperform in the long-term.
Please feel free to contact us if you need further clarity or would like to discuss your current portfolio positioning.

Leave a Reply

Your email address will not be published. Required fields are marked *