Investing can be complicated and confusing.
There is so much news, views, opinion and hype over the latest market value, the price of oil, the markets reaction to a new president or Prime Minister or the reaction of markets to an economic change. We view this as noise and believe that an efficiently designed, globally diversified investment strategy, where low cost and diversification is key, will give you a more successful investment experience.
Some investment professionals believe in the ability to forecast the future and use market timing and stock selecting to try and outwit the markets. At Totality Wealth we understand that markets are moved by news, news is unpredictable and therefore markets are too.
A client recently told me that our investment process was reassuringly boring and this got us thinking… it should be. Excitement should be kept to the roulette wheel, the horses or sky diving. Your core capital, the money that will fuel your financial plan, should be invested according to proven factors that drive investment returns.
A key concept that we employ when creating your investment plan:
Don’t allow your emotions or the emotions/ego of your investment manager to make wrong decisions about your investments.
We all have seen what happens when you get a hot tip on a stock or your friend tells you how much money they have made from an investment. If you’re like most investors, you don’t rush and buy the stock straightaway. You’ve probably had the experience of losing money before and so you follow it for a while to see how it does. The price starts to rise. With trepidation you watch it a little longer. The stock price continues to rise. You start to hope that this might make you a lot of money. With excitement you decide to buy. The price starts to move in the other direction. You are filled with regret and fear. The stock price continues to fall. Panic sets in. You sell. Your emotions have made you buy high and sell low, the opposite of a successful investment journey.
At Totality Wealth, we help rise above the noise and make investment decisions based on evidence, not speculation.
