Investing – with Cookies?

Investing – with Cookies?  Have you ever used cookie cutters (a gadget for makings cookies).

Cookie cutters are extremely effective when you’re making cookies. They let you produce lots of identical looking cookies, very fast.

I wonder if your IFA using the same “cookie cutter” approach when it comes to investing, using the same investment templates for clients. One size fits all?

Why ask?

It’s just that last year as the Chinese stock market unravelled, many investors were told not too panic and that the market storm would all blow over, despite it being fairly obvious that investment markets were going to tumble.

Wise not too totally panic but not wise to leave all of their invested assets at the mercy of the markets surely?

Of course some people may prefer the “Ostrich” approach to investing, others may not be so happy as they may feel vulnerable.

Some people like the security of having their investments looked after by large investment companies or stock brokers, but being big has its drawbacks as it is very costly for these companies to both communicate and to introduce changes to their investment models.

You may of course be in the “Ostrich” camp or enjoy the “security” of being invested with the investment equivalent of MacDonalds, and that’s fine. Its horses for courses, not everyone wants their investment portfolio looked after pro-actively.

Last and this year

You could of course go “A La Carte” and deal with a small investment boutique like ours. We introduce changes fairly often into our model portfolios and fortunately this has paid off for our clients, as last year as we advised our clients to move investment assets out into safer areas at an early stage in the market collapse.

If you are happy with the “cookie cutter” approach then we are not for you, that’s sure.

Early this year we created some new “recipes” for investment models and designed a number of Brexit orientated model portfolios and due to some of our investment selections, these were primarily aimed at capital preservation but there has been a bit of a jump with some of the investments recently! Consequently we are now considering taking profits after only two months!

Throwing away the cookie cutter (investment template) approach (1)

Model portfolios are fine but they do occasionally need to be adjusted to investment market conditions, like now for example, almost every market indicator has turned negative. You may not be aware of the long term market indicators used by investment professionals, these provide pretty good pointers to future market rises movements., I feel sure your investment advisers has already contacted you with regard to this?

Throwing away the cookie cutter (only unit trusts) approach (2)

Investment trusts are complex but can leverage portfolio returns, including investments trusts within a portfolio can be highly beneficial – if you fully understand how to choose them!

Our flexible approach with investments has paid off nicely and “takes the cake”!

As an investment boutique we can respond quicker to market events changing market conditions.

To download our free guide to Investing click here

If you have any concerns about investment markets or doubts about your investments or pensions do contact us.

Ray Best is a resilient Financial Planner with a unique approach to investment planning, his work ethic has propelled him from humble beginnings to be voted as a top UK Financial Planner by Vouched For (as published in the Sunday Times). These days he works with families with large investment portfolios or big inheritance tax liabilities, the first step, is to book a Discovery Meeting HERE.

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