Where do I start?
It’s easy to take our eyes off our goal when we are bombarded by the media with their endless disaster prophecies. I understand it is difficult, but we must stay focussed on our long term goal. We have just withstood two weeks of turmoil, but markets tend to look 18 months forward, not just 18 hours. Looking at the chart above we can see that the blue line of the UK FTSE 100 index reached it’s peak in April last year, 15 months ago now, and has declined significantly since. What is telling from this chart is the true effect the EU Referendum has had. The green line charts the progress of the US S&P500, it is much higher than the FTSE 100 today. Fortunately we remain invested globally, not just nationally.
Rational Investors?
If you believe “Modern Portfolio Theory” then the events that played out in the markets over this last fortnight should never have occurred. Continue reading “July 2016 Investment Review”