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Hewison Private Wealth - Insights
Hewison Insights
long term investment strategy

A long view is key to success

Nathan Lear
Partner/Private Client Adviser
1 Sep 2015

Last week was certainly a choppy week for global markets; the Australian sharemarket started the week with a near four per cent fall last Monday. The headlines were of course alarmist; “$59 billion dollars stripped from the market”, “Dow drops more than 500 points as US markets plummet amid global sell off”.

Despite this initial volatility, the sharemarket bounced back as quickly as the next day, finishing almost one (1) per cent up before the week was out.

It is important for investors to understand though that we are currently going through a rough patch – understand that whilst it may seem we are enduring back-to-back events that are negatively effecting the markets, it is not the time for panic. Whether it’s Greece’s debt crisis, the correction of the Chinese sharemarket, or concerns around the U.S. Federal Reserve raising interest rates. One wrong move in the face of panic and fear can result in the loss of a considerable amount of money. 

While no one likes to see their portfolio fall in value, in some cases, these short term fluctuations can present opportunities to rebalance your portfolio, which can make a meaningful positive impact on your portfolio’s long term performance. Many quality Australian company shares are trading at very attractive valuations on the back of recent market weakness. Now may be the time to call on other sectors, such as cash and fixed interest to top up your Australian share exposure.

We understand that it can be easy to be swayed by the headlines and market ‘noise’, investors will always face a serious test of their will when things get shaky. However, the best tactic to employ is to simply tune out the ‘noise’ and remind yourself of your long term investment strategy.

At Hewison Private Wealth we believe in taking a long term mindset instead of falling foul to turbulence, designing client portfolios with this in mind. These portfolios are diversified and not entirely exposed to risky assets, for example, local shares. This diversification helps soften the blow when sharemarkets decline.

Rest assured that your Hewison Private Wealth adviser is managing your portfolio according to your long term investment strategy and will recommend the necessary adjustments as required. If you are concerned about your portfolio I urge you to contact your adviser and for those self-managing, now is the time to take action.

The information provided above is general information only and individuals should seek specialised advice from a qualified financial adviser. Please contact Hewison Private Wealth for more information. 

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.