Portfolio update – thank you, geniuses!
The markets have been a lot calmer over the past few weeks; your portfolios have gained slightly since our previous update last month, meaning that for most of you who sit around the 40% to 60% in growth assets, we are a little bit closer to positive territory in 2020.
A big thank you to you all.
When news of the coronavirus started to break back in March, the markets and your portfolios took a short, sharp fall. It can be an emotional rollercoaster when you see (or even just imagine) the value of your portfolio falling. Add to that the bad news and gloomy forecasts that hit our screens, and you can easily start worrying that the markets are on a downward spiral and have you reaching for ‘safety’.
Many investors do. After all, that’s why market prices fall. But you didn’t panic (or at least you didn’t show it). You stayed invested, and you’ve been taking the ride back up as markets are recovering.
Napoleon’s definition of a military genius was, ‘The man who can do the average thing when all those around him are going crazy.’
It’s the same in investing. If you can stay true to your long-term financial plan, especially during times of mania and panic, it’ll serve you well. And, well, you must all be geniuses!