A short story about one clients investment horizon.
It’s December 2018.
A client calls in, asking what he should do with his investments.
At a loss, I ask him to clarify what he means.
“Haven’t you seen the market? It’s down 2%!”
I look at the performance of his investments:
– Since yesterday: -2.03%
– Since last week -0.32%
– Since last month: +1.74%
– Since last year: +8.43%
– Since 10 years ago: +112.54%
I ask him if he needs to cash in his investments in the next 10 days.
“No,” he says.
I ask him if he needs to cash in his investments in the next 10 years.
“I don’t think so,” he says.
“I’ve got enough money coming in so that I can leave my investments alone,” he tells me.
I ask him if he wants to achieve another 100%+ return over the next ten years.
“Yes,” he says.
I kindly ask him to stop looking at his bloody investments every day then!
But don’t just take my word for it. Vanguard, the venerable investment provider recently produced some research on investors who try to time the market. They found that very few people are able to successfully time the market. And for those that try to time the market, they are likely to earn a lower investment return than those who remain invested through the ups and downs.
The research is clear. It’s “time in the market” not “timing the market” that counts. If the best fund managers in the world can’t get in and out of the market at just the right time, what makes you think you can?
All the best,
James Mackay, Independent Financial Adviser in Bristol
P.s – if you want a little more help with navigating your investments, check out the 7 Simple Steps to Investment Success. It provides you with a proven process to help you avoid costly mistakes and tilt the odds in your favour. You can get a copy by clicking here.
Financial Advisor Bristol and Pension Advisor Clifton
About us: Frazer James Financial Advisers is a financial advisor, based in Clifton, Bristol. As an independent financial adviser, we’re able to provide independent and unbiased financial advice. We provide independent financial advice, pension advice, investment advice, inheritance tax planning and insurance advice.
If you would like to speak to a Financial Advisor, we offer an Initial Financial Consultation without cost or commitment. Meetings are held either at our offices, by video or by telephone. Our telephone number is 0117 990 2602.
Frazer James Financial Advisers is located at Square Works, 17 – 18 Berkeley Square, Bristol, BS8 1HB.
This article provides information about investing, but not personal advice. If you’re not sure which investments are right for you, please request advice.
Remember that investments can go up and down in value, you may get back less than you put in.