Many of you will have noticed that financial markets having been through some turbulence of late, the FTSE 100 having fallen from 7,776 on 8th August to just 7,282 as I type, on 10th September, a fall of 6.35%. These falls are largely as a result of the strengthening pound, which in turn has been caused by positive news around Brexit, not that you would necessarily have guessed this from the media!
As a result of this volatility, I thought now might be a good time to issue a reminder of how important it is not to be distracted by short-term events.
The following charts show how a selection of the Clearwater Portfolios (constructed by Evidence Based Investments) have performed over the past few months but also over some longer time periods.
3 Months to 7th September 2018
12 Months to 7th September 2018
5 Years to 7th September 2018
20 Years to 7th September 2018
The thing that stands out is, although there have been dips from time to time and some of them very sharp, there has always been a subsequent recovery. With every portfolio, the graph always ends up going from bottom left to top right, provided one is sufficiently patient. There is always something in the news that is causing the markets to move in one direction or another but over the longer-term these short-term issues fade into the background and appear just as ‘noise’ on the long-term charts.
We have just added some presentations to the website which I hope you will find helpful in gaining a better understanding of our approach to investing. Please just click on the titles below and you will be taken to the relevant presentation. Hard copies of these are available on request.
Pursuing a Better Investment Experience
UK Bias Portfolios - Performance Report
UK Bias Portfolios - Global Financial Crisis (2007-2009)
As always, if you have any questions on this subject or indeed on any other finance related matter, please do not hesitate to call me.
With kind regards,
Yours sincerely
Graham Ponting CFP Chartered MCSI
Managing Partner
