“DON’T PANIC MR MAINWARING …”

We again find ourselves in a financial turmoil. In some respect the falls on the investment market over the last week come as no surprise. The Euro faces problems with the massive debt held by Greece, Ireland and Portugal and the US only just prevented defaulting on their own debt. Growth in the UK is slow or non-existent and our debt rises.

But none of this news is NEW

The investment markets knew of all the problems and the share and bond prices reflected this. What has happened is that the sheep like reaction has sparked a run. This is what greed, fear & avarice does. This is the character of the investment market. Clearly we have some problems there is no denying it, but no new problems and the reality is that we do not know how this will play out. Sorry to be a bit blunt, but actually this is where the real wisdom lies. Anyone can utter platitudes, but that is all they are, although they do make us feel better in the short term.

The good news is that the investments you hold are robust and appropriate to your needs.

There is no need for change

The individual funds that comprise the portfolio are selected to complement each other. The football team analogy is appropriate here. We do not know what lies ahead, so we are prepared with our “defenders” and with our “strikers”. So please draw comfort from this as you read the press and listen to the “Today” programme, and remember that a fall of 100 points in the FTSE All Share index is always delivered with far more gravity than the elation given to a 100 point rise!