Three important investment lessons for future gains

This insight brings you three important investor lessons and the huge benefit that can be enjoyed from the small decisions you make every day.

Lesson 1 – Equities and Cash

As an investor, you may be tempted to abandon equities and go to cash when there is a heightened risk of recession.

But research has shown that stock prices incorporate these expectations and generally fall in value before a recession even begins.

If you’re nervous about the impact a recession could have on your investments, I recommend you take a look at this article:

Long term investors, don’t let a recession faze you

Lesson 2 – Market Signals

Do you believe a market high is a signal stocks are overvalued or have reached a ceiling?

You may be surprised to find out that the average returns for the American S&P 500 Index one, three and five years after a new market high are similar to those after months that ended at any level.

Want to find out more? Then download:

Why a stock peak isn’t a cliff

Lesson 3 – Value Stocks v Growth Stocks

The first half of 2023 marks the 10th time since 1926 that value stocks have underperformed growth stocks by more than 20 percentage points over a two-quarter period.

This third lesson delivers the the evidence as to why we continue to recommend all investment portfolios have some exposure to a value style of investing. Here’ s why:

When value delivers

Big returns from small actions

“Compounding is one of the most powerful forces in the world. Just ask Albert Einstein, who’s said to have called it the “eighth wonder”.”

The seemingly small decisions we make every day gain power over time. That’s why it’s important to take the long view and come up with a plan – in both wellness and investing – that creates momentum in the direction of our goals.

Don’t squander the power of time when you can recruit it to work in your favour. Wise words worth absorbing from David Booth.

The power of compounding in health and wealth

Second Opinion Service

We often seek out more than one perspective for matters of health. The same common-sense advice can apply to financial health as well. That’s why we offer our second opinion service.

If you, your family or close friends could benefit from a fresh perspective, please let us know in the form below. Any information you share with us will be treated with the careful handling it deserves.

At a second opinion meeting, we’ll assess where you are now, where you want to go, and the best ways we see to close that gap. If you could potentially benefit from working with us, we’ll say so. If we find you are already on the right financial path, we’ll tell you that as well.

To ask a question or arrange a second opinion meeting, please complete the form below or call 01825 76 33 66.