Market Update – remain focused on your plan

Keep your head while all about you are losing theirs (Kipling).

Your physical health is what is most important at this time so please manage any excessive health risks associated with this devastating virus.  Separately, it is natural that you will be wondering what all of this means for your nest-egg, so we hope the following wisdom offers you some comfort.

The last few weeks have seen significant movements in all financial markets and uncertainty is likely to continue.  Governments and authorities are trying to finely balance the risks associated with large numbers of people contracting the virus versus the unintended risks (in this context financial risks) of the panic that we are all witness to.  The markets require a circuit breaker to turn investor sentiment around which for now is not present.

The question we are asking ourselves is “how prolonged is this current malaise likely to be?”.  There can be no doubt that there will be a short term financial impact on individuals, business and the broader economy from the disruption caused by covid-19.  Some agencies are extrapolating out these effects long into the distance and well beyond what our current thinking indicates will be the case.

Keep focused, stick to your plan and have a disciplined and strategic approach to investing.

Having a disciplined and strategic approach to investment decision making is paramount for long-term goal achievement.  Consistency in approach is precisely for times like these when emotions (especially fear) can drive some investors to make poor investment decisions contrary to the original plan – ones which undermine long-term goal achievement.

As you know, we are strong in taking a disciplined, strategic approach to managing client portfolios relative to their goals, investment time-frames and comfort levels with risks.

As such now is the time to hold our nerve and remain focused on the long term.

If you would to discuss any aspect of your personal position please feel free to call either of us on 03 8602 0900.

 

Sam Adams and Glen Orbell

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