Here’s a story I’ve shared with you before, but it bears repeating. At a financial services event a few years ago, an experienced adviser told the round-table discussion I was involved in that he was convinced that the growth in an investment portfolio was in inverse proportion to the number of times the client checked its performance. Clearly, he was exaggerating for effect. But while he didn’t have any empirical evidence supporting that claim, there’s a strong element of truth in what he said. Read on to find out why, often, the best thing to do with your investment portfolio is to ignore it. Markets are volatile by their nature Share prices are based on the performance of individual companies... Read More

Recently, you read about why you should not let current events and investment turbulence affect your long-term, investment strategy. As an extension of that, I’d like to go a step further and explain why a bear market – a period where markets are falling – can be a good thing rather than something you should be alarmed by. Bear markets are an opportunity In June, the US fell into a bear market. This is when the value of an index or market – in this case, the S&P 500 index – falls more than 20% from a previous high. CNBC reports that, between the start of 2022 and mid-June, the S&P 500 index fell nearly 21%. Amazon’s share price fell... Read More

The unlikely inspiration for this article is a children’s story. In Aesop’s legendary fable, The Tortoise and the Hare, the two animals race against each other. The hare sets off at top speed but is easily distracted, whereas the tortoise keeps up a slow and steady pace ignoring all the noise and distractions – ultimately winning the race. It’s a parable I often have in mind when I’m thinking about investment strategies and how you should look to grow your wealth in the long term. The attraction of new and shiny objects When it comes to investment opportunities, it’s easy to believe the hype. You’ll regularly read about new funds and shares in the media. They’ll be boosted by a... Read More

You’ve probably noticed that the spectre of rising inflation is dominating the economic headlines at the moment. Almost every news programme you watch or newspaper or website you read will reference it, and the associated cost of living crisis. The rate of inflation reached 9% last month – the highest rate for more than 40 years. The latest Bank of England report suggests it’ll reach double figures later this year. Given how impactful high inflation can be on your day-to-day life, as well as your long-term financial planning, I thought it was worth devoting an article to it. We aren’t used to high inflation In very simple terms, inflation is the rate prices have risen in the last 12 months.... Read More

Although I’m happy to try my hand at the occasional straightforward DIY job around the house, when it comes to anything costly or complicated, I’m a firm believer in getting an expert in to do it. Likewise, when my car was recently due for its annual service, I suppose I could have had a go at doing the job myself. However, it would have taken at least a weekend, when my time could have been better spent doing something I’m actually good at or enjoy. The service wasn’t cheap, but I had the comfort of knowing professionals had done it and, if there were any problems, I could take it back in and get them fixed. If you’re anything like... Read More