Investment Updates

Investors who have entrusted some of their hard-earned money to us through our wealth management systems will soon be receiving their latest three-monthly valuation updates and we hope these put smiles back on their faces!

I have said before it is as if the coin reminds us it only has two sides – positive or negative and little between. What we have found however is that many investors elsewhere have seen their values stagnate or fall these last few months whilst we have seen our best year in the Firm’s thirty-five year history – not from speculative assets at all but because undervalued, unloved assets in sectors so many avoided (like banks) have begun to regain their fairer values again (more than doubling in the year) whilst some speculative froth has been blown-off the top of things like ‘tech’.

Did you know that from the low of March 2020, the UK market has recovered a whopping 56% and yes, that was from a very low starting point but still, there were investors out there who were selling up everything they had, to protect themselves from the thought of further losses. To put that into perspective, instead of witnessing your investments recover in value to say £50,000 now, you will still be sitting on a cash deposit of nearer £32,000. How many years will it take to get back to that £50,000, perhaps ten? Instead, with a little patience, perspective and optimism, you could be in that position in nearer one year. As we have said so many times before, to give yourselves the best opportunity of benefiting from sensible, market investments, you must be prepared to leave them alone and to avoid kneejerk reactions at the worst possible times. “Time in the market” really is key. Jumping ship every time there is a wobble will simply incur extra trading costs and usually just cement a capital loss instead of allowing conditions to normalise and recover.

It is always the uncertainty of a situation that creates excessive volatility but once there is clarity and understanding (not necessarily an immediate solution) that volatility tends to subside. Clients will know that we tried our very hardest to hand-hold significantly throughout the Pandemic’s worst effects too – such invaluable guidance and encouragement at one of the most challenging financial times in any of our histories.

If you would like to find out more, please contact the office.