We live in eventful times. And, although we do not have a crystal ball to predict future outcomes, the good news is that our Southwood Model Portfolios are well structured leading into such a volatile and unpredictable future. With a diversified investment mix that is biased to undervalued assets, we believe we will remain equally well-structured coming out of this. At Southwood Financial Planning our approach is sensible and built in line with your risk tolerance.
So, why should you be concerned? Well, if you do not feel ruffled by the current market volatility, that’s fantastic! Ups and downs are a natural part of investing. However, we are human, and prone to dwell on things even if we know we shouldn’t.
Observing investor irrationality in these situations is fascinating, and a timely reminder to always remember to “stay the course”. One wants to feel confident when investing, and it is our job to lead you down this path by seeking to make your investment journey as rewarding as possible. As the currents change, we need to continue to keep our heads above water.
Therefore, our message to you is threefold. First, please don’t feel the need to panic. We are well aware of what is going on and moments like this are inevitable. Second, we continue to paddle under the surface, and at this stage, don’t recommend any action but will keep you informed if/when any changes are recommended. And last, but not least, focus on “staying the course”. Always reflect on your long-term goals and remember that we are here to assist you should you feel that anything requires adjusting.
It’s easy to overplay the significance of volatility because it means we can address the overwhelming feelings of anxiety that occur in times of market stress. But with volatility comes opportunity, especially for those who are patient and sensible.
If you think about this logically, rarely (if ever) can you buy a bargain in “good times”. In times of market distress, panicked investors typically show a tendency to sell, and depending on how this all plays out, we could find ourselves able to take advantage of undervalued shares.
We will leave with you this timely quote from Warren Buffett, “The stock market is a device for transferring money from the impatient to the patient.” We will continue to focus on providing quality financial advice to our clients and in turn ask you to let us know if you are feeling uneasy or if your circumstances have changed.
The Southwood Financial Planning Team