Berkshire IFA Investment News – The last few years have been very kind to you the investor, you are almost certainly sitting on a heap of profit. As we are all born with a sense of innate optimism, you will be expecting more of the same. Not only that but we are having the most glorious hot weather, isn’t life great!
What is the worse or best thing that can happen on a glorious sunny day, someone throwing a bucket of ice cold water over you.
Assume that this is that cold bucket of water.
The last few years of stock market gains have been largely the result of money flooding into the market as an alternative to be in receipt of low interest rates. (Not much of an alternative). The market has been driven by the frenetic growth of China, new technology has also played a part, particularly helping the “Disrupters” like Uber.
Although the growth off China has been a major factor, China is a complete financial basket case that must implode sometime, I anticipate towards the end of this year. When China implodes it will affect financial markets worldwide.
My suggestion is that you should take steps now to take the “heat” out of your investment portfolios, take profits on say 50% of your holdings and move into safer more cautious investments.
This advice may appear fly in the face of one of my previous blogs, but I am making the point here about taking an active stance in cautious investments temporarily, not the robotic selection of cautious investments as a matter of routine.
You may have a problem in reaching your decision as most people don’t act with complete rationality. They react with their emotional right brain, rather than the rational, reflective left brain. To optimise your ability to make informed decisions, you need to use both sides of your brain, very few people do.
In that case either greed or fear will be the major motivator in making your decision.
Contact us if you are concerned or would like a second opinion.
Phone Marie on 01189 347 921.