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How we deal with market “corrections” / “crises” / “Armageddon”

by | May 4, 2018 | Investment News

Turning off the TV and not reading the financial press is a great start. And you should be doing that regardless of what’s going on. I may have mentioned this before.

Still, if you find yourself on the edge of wanting to do “something”, let’s have a chat. It will go something like this:

“Hi there, how is everything? You’re worried about what’s going on in the stockmarket? What do you think is happening? You’re not sure but someone said that this time it might be different? How do you think that’s possible?

I don’t think there’s anything to worry about at all. This is normal and to be expected. I’ve no doubt that it will be as temporary as all the others. It’s just a matter of time.

I’d like to help you not waste any more time or energy on this. You’re fine, your plan is fine, your forecasts are fine.

Remember the plan and investment strategy we carefully put together? Let’s stick to it, I promise nothing has happened that makes them redundant.

Let’s run through them again.

First things first – we know EXACTLY where your money is to cover the next three years. It’s as secure as it possibly can be.

Second, we’ve got your future costs, plus cost inflation increases covered. You should be fine for decades to come. But only if we stick to the plan.

Third, if you don’t make it your loved ones are provided for.

Your investment strategy backs all this up and produces inflation beating returns on average. Historically that has delivered what you need when you need it.

You’re invested in the 2,000 biggest and best companies in the world. They’ll continue to do well, and you’ll continue to do well. That’s why we chose them.

Isn’t that a great plan? This short term, temporary hiatus is no reason to abandon the plan or investment strategy.

How can I be so sure? How can I be sure I’m waking up tomorrow? Or that the sun will come up?

I do know that EVERY stockmarket setback to date has proven to be temporary. Regardless of how deep or shallow they’ve all been temporary.

That three-year buffer gives us enough time for whatever is going on to stop and for the permanent uptrend to reassert itself. During the mass panic a decade ago, it took about three years to recover.

Let’s see if we can’t help you get distracted by something worth being distracted by. This is not worth it.

Where are you with all those things we agreed you wanted to be doing – they’re listed in your plan.

How’s the garden / dog? Where are you with the home improvements / helping the children / grandchildren that we were talking about? How about those Spurs / Hammers / Arsenal / Canaries? Where are you going on holiday? Did you replace your car / sofa / TV?

These are the things that are important. They are your life. A life well lived is what matters.

 Let’s get on with that shall we?”

 

future proofing your finances

advice@townclosefp.co.uk

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