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Taking the Long Term View

The Royal Bank of Scotland’s comment last week that investors should ‘sell everything’ not only generated headlines; it also gave rise to a fierce debate about the merits, or otherwise, of the advice.

Skimming across the comments in various publications reveals a mixed picture. Whilst there seems to be general agreement that there are undoubtedly areas of concern such as a slowdown in China and falling oil prices, opinion seems to be divided on whether these represent a threat or an opportunity and whether any potential stock market correction should lead investors to hold, buy or sell.

In a way these conflicting ideas highlight the importance of investors making decisions based on their own individual circumstances rather than on market generalisations. As one commentator was quoted in The Independent “It is rarely sensible to buy or sell investments based on greed or panic." The reality of investing is that markets do rise and fall and the value of investments can go down as well as up.

For the majority of investors the aim is long-term financial security based on individual circumstances and future anticipated needs. If you are looking for a return over ten, twenty or more years then short-term movements in the market matter less than creating a portfolio which is designed to meet individual requirements over the long term. Of course portfolios should be regularly reviewed to ensure that they take into account any changes in personal circumstances and expectations as well as changes in the marketplace but that review should be carried out on a personal basis rather than in response to attention grabbing headlines.

If you’re looking to create an investment portfolio to meet your current and future requirements, or if your situation has changed and you may therefore need to review your existing portfolio, contact Beckworth by using one of the links on our website.