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Bull, Bear – who is pulling the strings?

For me personally, I think it is neither a Bull nor a Bear market – it is merely volatile.

With volatility comes opportunity.

Who do I believe?

Not an easy task this. More often than not you have to get past the ‘white noise’ and talk to some of the professionals and then place your trust.

I was in London recently visiting the offices of Quilter Cheviot, 1 Kingsway. David Miller, lead Fund Manager of the Nexus Global Solutions Portfolio was on hand to take us through the ups and downs of the market, whilst allowing us to observe how his portfolio managed to ‘preserve’ wealth during this volatile time and even look to gain. Not an easy task!

How so?

QC take a view that you should not necessarily look at the Macro Economics of things – so ‘the bigger picture’. You have to look at the component parts when ‘stock’ selecting and really look under the bonnet of the individual companies.

For those of you who have been sat on Tracker Funds over this period – wow, what a ride! Tracker Funds are recommended/sold because they are supposed to be a cheap solution at following the market – and boy do they just do that! Is that what you really wanted- to follow the market down?

QC sat back and looked at how much cash they were sat on and considered which stocks looked even cheaper and likely to bounce back – but based on true economics and knowledge of the asset. For example they added to their weighting of Apple and also of BAT – both stocks recovering extremely well when the jitters stopped.

So whilst investors, professional and retail, get the scared and head for the door – there are those who step back, review, re-visit and make informed decisions on where the ‘value’ actually lies.

How did they do?

Well if you were sat in a FTSE100 tracker you would have seen the value of your money reduce by some 6% on the year. The Nexus Global Solutions Portfolio managed by Quilter Cheviot was off less than 1% on the year.

Whilst the Portfolio is more expensive to run than a tracker – here is where we can demonstrate the ‘added value’.

Moving onwards

We have seen this last week the FTSE100 back up to 6300 from its low point of 5800 in recent weeks. So those bold enough to have used their cash to purchase stocks at those prices will be smiling today.

Summary

It is clear to me more and more each day, that I am no expert in selecting funds or stocks and that’s the general consensus of the firm I represent.

It is far better to place your clients’ hard earned wealth in the hands of experts; find the right company and place your trust in them.

As Blacktower enters into its 30th year of trading, we have worked with many a Life Company, Fund House and Discretionary Fund Manager – and have built up trustworthy relationships with all.

You place your trust in us as we do in them in order to preserve your wealth and make it grow for you.

This communication is for informational purposes only and is not intended to constitute, and should not be construed as, investment advice, investment recommendations or investment research. You should seek advice from a professional adviser before embarking on any financial planning activity. Whilst every effort has been made to ensure the information contained in this communication is correct, we are not responsible for any errors or omissions.

Other News

Pensions may strengthen for the younger generation

Pound coinsIt’s never too early to start saving for a pension – you’ve no doubt heard that one before, perhaps while searching for pension advice online or in news reports on the financial future of pensioners in this country.

Hopefully, you took note of it and started saving as soon as you possibly could, thinking of your retirement planning long before other milestones such as getting married or having children. Maybe you left it a little later. Either way, solid financial planning, which may involve pension transfer advice from a professional financial adviser, should help you make secure financial decisions.

Young workers today don’t need to have someone to remind them that they should be saving for retirement thanks to auto-enrolment, which is a scheme that makes sure, unless they choose to opt out, all workers pay part of their salary into a private pension scheme. As almost everyone could do with starting their retirement saving as early as possible, auto-enrolment is a great idea, and now it appears that it could be the main factor in the improvement of future pension incomes, settling fears that some young savers may have regarding the prosperity of their long-term future.

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