Investing In Uncertainty

Jul 20, 2016 | Tony Byrne's View


Nobody can hide from the frenzy following Brexit. The media have clearly focused heavily on the financial markets, particularly the falls and speedy recovery of the FTSE 100 since the UK voted to leave. It is not surprising that investors have been spooked by the ‘uncertainty’ around investing at this time. Good financial planning can ensure that your investments stand the test of time, possibly benefiting from short term losses as we have seen over the past week. Our investment strategies have a proven track record of protecting and accelerating wealth even in these difficult times.

Many self – investors have chosen to invest in funds that are not diversified, and we have even seen new clients who had all of their life savings invested into one or two companies! If you had an investment in Barclays the day after ‘Brexit’, you would have seen your investments fall in excess of 25% (according to Google Finance on 30th June 2016). With an investment of £200,000, this would have equated to losses of £50,000 in one day!
Thankfully, we would never recommend an investment into one company, so none of our clients experienced such losses.

Diversification is key. A portfolio should not be invested in 100% equities (unless you are happy to take excessive risk). We look at each client’s circumstances individually, including their appetite for risk, their ability to take risk financially and their need to take risk in order to achieve lifetime goals.
The outcome of this assessment is a fully diversified portfolio invested in a number of different assets like bonds, property and equities globally, to ensure that everybody fully benefits from growth in the markets.

It must also be noted that investing with intent is also incredibly important. A phrase often used in our offices is ‘begin with the end in mind.’ There is no point investing if you don’t know why you’re doing it. We provide a service which goes beyond simply investing money, we provide guidance on achieving your life goals. This in turn ensures that all of your financial arrangements are geared to meet your future goals, with the flexibility to adapt to any changes that life may throw at you. In these uncertain times, having your investments reviewed could be key to ensuring you remain on track to achieving your life goals like retiring early financially free. Losses of £50,000 in one day are easily avoidable with a clear plan and careful investment strategies designed to suit your risk profile.

Stock market linked investments and any income from them, can fall as well as rise and is not guaranteed. Any figures quoted are for illustrative purposes and should not be taken as a forecast or guarantee. Past performance should not be seen as an indication of future returns and clients may get back less than they have invested.

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