Now Is The Time For Long Term Investing - Don’t Let The Markets Catch You Out!

At RHG we like to think we’re one step ahead of the game, and in evidence we have produced some very solid long term performance figures, in spite of recent market traumas. We can point to the latter half of 2007 for the base of our recent success, when we became concerned by what we saw as a bubble in property prices and over extended lending, and re-positioned our portfolios accordingly. This stood us in very good stead for the subsequent savage downturn.

In 2009 we remained cautious, taking the view that we were in for a long slow recovery, punctuated with mini recessions, that the pound would go much lower, and stock markets would plunge again. While we were right on the economy, we were wrong on the stock market’s reaction. Although economic data remained poor, investors bet on a “V” shaped recovery, and shares soared from March to December 2009. Sterling appreciated, and overseas investments were subdued as a result.

But in spite of our misreading of the markets, we have still made good money for our investors. Those invested more cautiously benefitted from large holdings in corporate bonds, while those more adventurous investors did well out of areas such as Russia, who’s market more than doubled in 2009.

My point? – Even though our reading of the economy may have been accurate (and current data suggests it was), stock markets do their own thing. And in spite of our cautious stance, we know when market sentiment is working against us, and were able to add to the right sectors in order to take advantage.

So, it pays to be fully invested. When equity markets are rising, we can use technical analysis to assist us in our entry and exit points. If and when shares tumble again, we are able to quickly switch out of more risky equities and re-invest into alternative sectors such as absolute return, bonds and commodities such as gold.

In conclusion, if you are asking yourself “When is the right time to invest?”, the answer is always “Now!” – The more taxing question is “What should I invest in?” – And that you can leave in our capable hands!
 

The price of shares / units and income from them may fall as well as rise and is not guaranteed.  Past performance should not be seen as an indication of future performance. Current tax levels and reliefs may change. Depending on individual circumstances, this may affect investment returns.