Right now it’s very hard to watch the news and see the suffering that is taking place in Ukraine. As wealth managers, we feel it is important to let you know our thoughts on what is going on in the financial market.

For some of you the impact of the situation in Ukraine on your wealth is of little importance, compared to the loss and devastation on the ground, however for others, you may be experiencing some anxiety.

Modern day politics means that almost any event affects global markets and it is natural to be fearful in times of uncertainty – real time news and the world media can often feed this fear.  However, acting on this fear is optional and can often result in disastrous financial outcomes, which many investors will never recover from.

Our philosophy is unchanged from the Covid market “shock” that occurred in February/March 2020.  We believe that mixing global events with investment policy is a dangerous pursuit.  We plan to make zero changes to our family’s investment portfolio and would urge others to proceed in the same manner.  We believe that if you have a well-constructed long term plan, and invest in a globally diverse portfolio, no reaction is needed.  If you have an investment time frame of 30 years, making investment decisions based on the last 30 days of news is a recipe for disaster.  It is very tempting to move your money into a “safe” asset like cash.  However this decision forces you to make two correct timing decisions.  The first is when to come out of the market, the second is when to get back in.  History tells us that it is impossible to get these two decisions right.  Long term wealth is possessing the courage to do nothing when your natural instincts are telling you to run.

There will be many more market declines over the course of your lifetime.  These will be temporary declines.  Behave correctly and the permanent returns are yours.  The stock market has proven that it advances after all shocking world events.  We are not changing our family’s long term investment portfolio, and neither should you.

 

Contact us here at Robson Laidler Wealth if you wish to discuss your financial situation in more detail.

 

Please  remember  that  past  performance  may  not  be  indicative  of  future  results.