Plan 2 Prosper

Media headlines continue to be dominated by reports regarding uncertainty and volatility within our investment markets. As is usual, there are unhelpful voices saying that they got out of the markets before point X or point Y and are therefore smarter than the rest of us because of this proprietary  system or that registered business model … I trust when you come across them you recognise the sales pitch for what it is and insert bucket loads lots of disbelief.

Joe Public and for that matter Arthur Adviser are being scared out of their wits by media headlines highlighting doom and gloom, depression period analalogies and even more uncertainty. It is natural that consumer press will want to take a golden opportunity to grab reader and viewer attention. All this does is provide a result similar to every one in Rockhampton throwing their tins of mower fuel from the lookouts on Mt Archer toward the fires, fanning and feeding the flames that have been harassing the ranges and blanketing the region in a smoky haze.

More than anything, we as humans tend to fundamentally be herd animals. We like to move together and to think the same way … even if those thoughts and actions are in conflict with what we know fundamentally to be true. What we know for sure is that emotional human responses are rarely rewarded, and nobody has a clear crystal ball to forecast when and how the markets will respond. Bear markets do end and this time its not any different.

If you continue to watch the news and continue to get depressed by the “news” being provided, the best advice that can be provided is to simply stop watching the news. Take a moment for yourself. Go outside for a walk. Do those things you enjoy. Me, I enjoy pretending to fish and just watching the world go by … 

To further assist you, the major messages we would like to convey to you at this time are:

• Share markets are volatile, but Bear markets don’t last forever
• Focus on the Medium to Long Term

In doing this it is important to:

• Rebalance using a disciplined approach 
• Access the best management firms in the world, who can add value through active fundamental stock research 
• Be well diversified

Please gain reassurance that adopting the methodology above has aided many people like you to weather and thrive through many crises since 1985, and also that the important points outlined above are the very foundations of the vast majority of the plans we have implemented with our clients.

Where to from here?

• Contact us
• Get more information about an Educational Forum for you and your friends
• Register and receive regular email updates

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Disclosure / Disclaimer:

Dan Smith and Plan 2 Prosper are authorised representatives of GWM Adviser Services Ltd ABN 96 002 071 749 trading as MLC financial Planning, Australian Financial Services Licensee (AFSL:230692). The articles being accessed may contain general information and general securities advice. Before making any investment decision on the basis of the articles, you should consider, with or without advice, the contents of the articles in light of your particular investment needs, objectives and financial circumstances.

This entry was posted on Monday, November 10th, 2008 at 1:39 pm and is filed under General, Goals & Objectives, Investment, Superannuation. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.