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It wasn’t too long ago that an RBS Analyst and ‘expert’ was shouting “sell, sell, sell”. It was in January 2016, and every news channel and financial section reported the story. If you had followed this advice, and did indeed sell your stock market linked investments, you would have missed some excellent returns over the past 14 months.

The Brexit result in June was largely unexpected, and once again the gloom and doom merchants told us that this was very bad news for stock markets. Interestingly, almost all stock markets rose sharply, with UK shares doing particularly well, in part due to the pound falling in value.

When Trump won the US election, not only was it a surprise to most commentators, but the forecasts for another stock market selloff was completely wrong. The S&P 500 & FTSE 100 have continued to climb strongly.

So what have we learned from this experience? At Macarthur Denton we do not focus on the short term as it can be unpredictable, and trying to guess the market direction is a difficult thing to do. If we had believed the so called experts, we should have sold equities and moved client money to cash. What a mistake that would have been in 2016!

Our experience tells us that a sound strategy, with regular reviews, is the best way to produce excellent growth over the medium to long term. As we have stated many times, the most important thing is ‘time in the market, not timing the market!’

This entry was posted on March 21, 2017