As you’re all probably aware, most global markets are at all-time highs. Events that would normally pull markets clean off the tracks – Brexit, Trump, the UK’s disastrous election result, the continuing Euro-troubles – are simply being brushed off as minor irritations.
Investors understandably worry and panic when markets are falling. And that’s when we bring out the big guns. We have an arsenal of articles and videos designed to re-assure investors when times get tough. They remind investors that although markets do go up and down, in the long term, stockmarket investments have always beaten cash and inflation.
So I thought now is a good time – when everything is going right – to tell investors what to do now. And the answer is the same. A well-diversified, regularly rebalanced multi asset investment – and time – are your best allies in your quest for financial freedom. Asset allocation is the key determinant of investment returns. Time in, not timing, is the key to successful investment. Rebalancing captures growth and redistributes it to the rest of the portfolio.
So when we see market corrections – and we will see market corrections (who knows when – maybe tomorrow maybe in two years time) I will still be rolling out the same message. Keep Calm, Keep Diversfied, Keep Invested, Keep Rebalancing.