Q1 2016 has been a rollercoaster ride on the global markets and therefore disciplined thinking has paid off well. The overall mood of global markets at the end of March was considerably different to January, however, it is interesting to think that the reasons quoted for the January sell off have not been solved. An Asset Allocation approach demands that we buy when asset prices fall so at the end of January we bought equities in our discretionary portfolios. This means that the recovery experienced in late February and March was quicker for these clients. This is much easier said than done as buying in January was hardly an easy decision. More on this below.
In early December, I had the pleasure of attending a Wealth Management conference in Zurich with some of Europe’s largest asset and wealth managers. There were many interesting discussions for both professional and end-client as we all had one thing on our minds – how to make money in 2016?! There are plenty of issues to keep us concerned and cautious as we actively seek opportunities. It is interesting to see how the entire industry grapples with similar issues of low returns, high levels of uncertainty and volatile markets – I have elaborated more on this issue below.
Wishing you Shana Tova in the financial markets and beyond!
The last quarter has been a painful one in global markets. August was one of the worst months we have had since the 2008 crises. It is one thing to talk about expected volatility but it is another thing to experience it (professional money managers are human too).
Please be assured that we are watching the situation very carefully to protect your investments and seek opportunities. This volatility has been a long time in the making and we have commented on this expectation in previous quarterly communications, explaining how we position ourselves to optimize the relative risk and return environment.
The consensus is that this volatility is here to stay, so we need to be disciplined and hold the course. We must be very careful not to make the classic behavioral finance mistakes of selling at the wrong time so we need to stick to our long-term plans.
This quarter has seen some relatively exceptional movements in the bond market and the resurgence of the Greek tragedy. The volatility has been a long time in the making and we have commented on this expectation in previous quarterly communications, explaining how we position ourselves to optimize the relative risk and return environment.
The consensus is that this volatility is here to stay, so we need to be disciplined and hold the course. We must do everything we can to avoid selling after a sharp drop in the bond market and stick to our long-term plans.
Published originally in the Jerusalem Post
Successful investing requires more than just selecting the right asset allocation, so how can you keep your portfolio on track in a volatile market?
It requires avoiding mistakes that can seriously hurt your long-term portfolio growth potential. By simply being aware and avoiding any one (or more) of the common mistakes that investors make, could greatly improve your ability to reach your investment goals.