The fitness levels on display in the last Sunday’s All Ireland final once again had us in awe. Similarly, when I watch Rugby and many other sports I marvel at the speed, strength and athleticism of today’s players.
Matches have huge intensity levels and yet the accuracy executed is incredible. Often the phrase “A Different Era” is used when comparing todays stars to those of previous decades.
From an investment perspective we are definitely in a different era.
Banks have slashed deposit rates in an attempt to return to profitability. Indeed, some banks now charge customers for placing money on deposit.
So we know we need to move away from bank deposits paying near-zero rates however the expectations for returns has been lowered across all asset classes for the next 10 years.
In May 2008 an investor in a German government bond was guaranteed to receive 4.45% per annum over the following 10 years. The same investment yesterday will pay an investor just 0.02% per annum until 2026.
The multi-decade lows for investors mirrors the intensity of a hard fought game from your favourite sport where the margins between victory and defeat are now wafer thin. Check the strength, conditioning and accuracy of your investment or pension portfolio.
The best results in investing also goes to the smartest, leanest and fittest.
Markets will either rise, fall or stay the same immediately after the election. This short term ‘movement’ has always been unknowable and is simply an investment truth.
A well-designed diversified investment portfolio is built with this simple wisdom at its core. It is well spread from an asset, industrial sector and geographical perspective to weather all market storms.
We recommend that you avoid making long-term investment decisions when listening to the dramatic noise from the media. It is in many “experts” interests to create this noise and do all they can to remove the clarity in your investment strategy.
You will remember the panic predictions in the wake of the Brexit vote. We did not change the portfolio of any of our clients on seeing the Brexit result last June.
Our reaction will be the same when we finally know whether it is Hilary or Donald entering the Oval Office. Having a suitably diversified and risk managed portfolio is far more important than the next “noisy” news event which will undoubtedly make great TV viewing.
http://www.completefinancial.ie / 021-4271687
A recent article from the Irish Times which highlights the inherent dangers with Irish Property Investment.
There were some mixed messages on the outlook for Irish commercial property this week. On the one hand estate agent HWBC reported that an acute shortage in supply of office space in Dublin will continue to drive rents up to the end of 2017. On the other, Standard Life Investments has suggested that investors may be under-estimating the risks of investing in Irish property.
The property team at the Scottish based investment group prepared a global risk tool, which looks at the total return investors could generate from the best-quality offices in 60 countries.
It then assesses how much of the return could be at risk, based on seven risk factors such as liquidity, level of competition and the state of the wider economy. Continue reading
In 2002 psychologist Daniel Kahneman was awarded the Nobel Memorial Prize in Economics for his study of financial decision making.
One specific area of interest is the gap between the returns that are earned in the markets when an investor builds a diversified portfolio which is rebalanced in a timely manner compared to the returns earned by an investor who moves money around in an emotional response to what is happening in the markets. Continue reading
We are delighted to announce that Complete Financial Advice Limited has been nominated and shortlisted again for the LPI 2015 awards which recognises excellence in the Financial Advice sector.
We were very fortunate to win last year in the Best Broker in Munster category and we are delighted to be nominated again this year.
Cork financial advice firm Complete Financial scooped the prestigious Best Munster Broker Award at the inaugural Irish Broker Association Life Pensions and Investments Awards in 2014.
They also were awarded Irish Financial Advisory Firm of the Year 2014 at the Acquisition International awards in London last July.