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Hewison Private Wealth - Insights
Hewison Insights
Quality assets

Special Market Update – 28th October 2008

JTB Studios
Private Client Adviser
28 Oct 2008

Hewisons philosophy was largely born out of the 1987 share market crash. What we are seeing now we have seen before.

Some of the basic rules we employ are:

You must remain in control of your assets and not suffer from the actions of other investors.

Over the past week or so we have seen massive outflows from managed funds and some funds freeze their redemptions as investors blindly seek the government guarantee or succumb to panic and fear. This is because they have lost control of their investments, regardless of whether they had any intention of withdrawing funds.

Your income must remain constant and reliable.

We continually preach this philosophy as assets will always be underpinned by their ability to generate income and if your income is safe you can survive short term market moves.

You own assets that are best able to recover value

Quality assets will always recover their intrinsic value after all the market turmoil subsides and confidence returns.

Whilst the overall market index may take considerable time to recover its value, individual company shares will recover faster. Bear in mind that the share market will have a different profile after this correction, but fundamental values of quality companies will always be the true market measure.

You are in a position to take advantage of an oversold market

Because you are a “direct” investor, you have the flexibility to make portfolio adjustment and the ability to buy undervalued assets where and when it is appropriate.

All these factors are in place and you are in good shape. We know it is scary, but we believe we have seen the worst. Volatility will continue for a while but we will soon begin to see quality assets recover their value.

In the meantime, your portfolio income remains in-tact so any short term cash flow needs continue to be met.

If you have any concerns, call us we are always available to you at any time.

Download article Hewison Private Wealth is a Melbourne based independent financial planning firm. Our financial advisers are highly qualified wealth managers and specialise in self managed super funds (SMSF), financial planning, retirement planning advice and investment portfolio management. If you would like to speak to a financial adviser on how you can secure your financial future please contact us 03 8548 4800, email info@hewison.com.au or visit www.hewison.com.auPlease note: The advice provided above is general information only and individuals should seek specialised advice from a qualified financial advisor. The views in this blog are those of the individual and may not represent the general opinion of the firm. Please contact Hewison Private Wealth for more information.