If you are fortunate enough to be looking forward to unwinding by the pool, or contemplating life whilst sipping a cold drink on the beach this August, then maybe you’ll appreciate the fact that, sometimes in life, you just need to relax and do as little as possible.
And believe it or not, relaxing and doing as little as possible, is often one of the most underrated investment strategies – the ability to have confidence in a well structured and researched investment portfolio – and knowing that time in the market, not timing the market, is the recipe to long term results.
These sentiments were backed up in the Financial Times this week, in an article which rightly claimed; “Trying to be too clever is one of the biggest errors that anyone can make with their money. When someone declares one week that you should be taking a punt on Russian stocks or going long on the yen because they have happened to read a few articles and looked at some stock charts, you would generally do well to ignore them.”
It goes on to say; “Maybe this week investors should be taking a punt on bombed-out Russian stocks? Or maybe they should be worrying about how expensive the US market has become and be trimming their holdings? Or it could be speculation over what Brexit will do to UK financial assets and the pound? The list of things to be worrying about is always long…”
Of course, when stock markets dip, there is always a sense of unease among investors who never take pleasure in seeing their portfolios fall in value, but we must always remember the need for long-term strategic financial planning rather than worrying about short-term market fluctuations of which we have no control over.
Here at The Financial Planning Group we always advise investors to look for a structured, disciplined approach, rather than gamble their life savings away chasing unrealistic returns.
Our aim is to change the fundamental relationship people have with their money, and to give them confidence and clarity in their own future.
If you would like to arrange an investment consultation, please call Tim Norris or Alan Clifton on 0800 731 7614 and we would be delighted to arrange a meeting at our offices in the heart of Teddington.