As Massive Attack advised us in 1991 with the “Hymn Of The Big Wheel”, the big wheel keeps on turning.
After two years of investment malaise from December 2021 until November 2023 equity markets have picked up considerably and returned something like 15% these last four months.
What comes around goes around in the investment world – the pendulum swings back and forth, fear and loathing are replaced by hope and optimism.
And the last 27 months remind us of this. Things look brighter now, client accounts are generally at all time highs, the average expected return in the 5-6% pa range has been achieved.
But those returns have only been enjoyed that those that stuck to their financial plan and investment strategy. Those that tried to time the market are probably disappointed.
We really earn our fees when things don’t seem great by helping you to stick to those plans and strategies. The uplift in values you are now enjoying are the payoff – the consequence of keeping the faith.
And so, as things look brighter and we are all feeling better, it is our duty to remind you that the next malaise is in the post, it is on the way.
What will cause it and when it will arrive nobody knows, but on the way it is.
And while the sun is shining, we must make hay, which means topping up cash reserves significantly wherever possible, so you are well set for the next downswing.
And that’s what we will be doing.