The GLOBAL markets just now are all on a low probably stemming from low employment statistics in the US and there is sweet nothing that anyone can do about this. Admittedly it would be different if say the US market was down and other markets were up as all you would need to do then is avoid the US – but needless to say it is not that easy. The US is the biggest economy in the world, and if it shivers, then everyone else could catch a cold.
When you look at global investments, it is estimated that at least 50% of a global fund will be US based, so no sense in going there to avoid the US. You can look at other countries like Japan, Pacific, Far East, European – but they all to a certain extent rely on the US market, so as I said earlier, when the US market stutters, then all will stutter. I have a wee expression when I do any investing for clients and even myself – and that is “when in doubt – don’t”. At times like this when all markets are falling, I defy anyone to say that a specific area is good, and it is very much like moving money from the frying pan to the fire. When in doubt – don’t.
Right at the moment when things are rather unsettled, I can’t say with certainty that this fund or that fund will be better and will give a client growth, so I basically sit on my hands and don’t move any money at all. It’s not as if I am sitting doing nothing, because what I am continually doing is my research on the funds available, and watching the trends of valuations/prices before I start trading again.
Only when I see some grass roots appearing, do I make a move and even then it is cautious. When I see things improving – or at least it looks as though they are improving, I will invariably invest my own money where I think it could do best, keep my eyes on it for a few days, and if at the end of the period it is still doing well, then I will start to move clients funds- and up to date, this has always been successful.
You can rest assured that the investments WILL come back, but how long they will take to do that and over what timescale – no-one knows. So where you are dealing with the unknown like this, you need to take things easy to start with and don’t jump in with two big welly feet.
Research is the key – and you need to do this repeatedly.
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