One of my most important jobs as a financial adviser is to stop you making mistakes with your money.
Often we get scared and make bad decisions. For example, the Covid Crash. When the stock market crashed and we saw the headlines stating it was the worst crash since 2008 and how the world was ending; how many people cashed in their investments? How many people got scared and sold their shares when the market was at its lowest? A lot!!
This graph shows the average global equity fund’s performance over the last two years – the blue line.
Can you see when the stock market dropped, at my subtly labelled Argh!! point?
But can you also see for all of you brave people what happened after that? If you did nothing and kept your investments without changing them. The market recovered and rose further and now we are all dancing and singing La la la!!
From two years ago global markets are up about 30%. However, if you had sold at Argh!! and bought at La la la!! you would have lost about 40%!! Ouch!!
The best advice is often to set up your investments and leave them. Close your eyes, ignore them, stick your head in the sand. Or keep looking but don’t do anything with them, without a full conversation with us here at Blueberry first. My ISA went down by a horrible amount in the midst of the crash, but I was brave, did nothing and it shot back up. Go me!! (My pension would have done the same, but I didn’t look).
I am here to make you brave 😊.