July 8, 2024
After thirty years of advising clients on Wealth Management, I have become very cynical of the merchants of doom who seem to enjoy nothing more than sowing fear amongst investors.
Typically, the bad news comes in the form of an imminent prediction about a stock market crash.
Whilst these prophecies are almost always wrong and are only occasionally correct, that doesn’t mean they aren’t repeated with a frequency that strikes fear in many individual investors.
As endless academic research has shown, trying to ‘time the market’ as it’s known is a fool’s errand.
The chance of selling at the top is remote, the chance of then buying at the bottom is remote, and the possibility of timing both moves perfectly is almost non-existent.
Yet the merchants of doom continue with their predictions, and too many investors self-harm by following their words.
A seminal analysis published by the Vanguard Group, one of the world’s largest asset managers, concluded, “We found that working with an adviser can add around 3% in net returns.”
The largest contributor to this was helping clients avoid panic and mistakes.
According to the old adage, ‘It’s time in the market, not timing the market.
It remains as true today as ever.
With equities hitting all-time highs – as they have regularly done over the last century – it is better to focus on the importance of asset allocation, diversification and professional expertise rather than reacting to the guesses of the doom-mongers.
Andrew Album is a financial advisor and wealth manager licensed in the UK and Israel who works with leading firms in both countries. With over thirty years of experience, Andrew helps individuals and families navigate financial planning, investment strategies, and wealth preservation.
For more insights and advice, connect with Andrew Album on LinkedIn or visit www.uk-aliyah.com