Second quarter has come and gone, along with the usual mixed bag of “what next?” news. There were the typical ugly players such as potential trade wars and rising interest rates. There were also the usual market darlings, such as this quarter’s big, bold tech stocks. Donald Trump even threw in a few tweets that caused markets to stir. Each in their own way can tempt you to recoil or veer off-course.

 

You might already be able to guess what our take is on recent market news: Ignore the short term “noise” and #StickWithThePlan. At the same time, we understand how hard not reacting to recent news can sometimes be. No matter how often we’re faced with uncertainty or how well we think we’ve prepared for it, new threats and opportunities have real ramifications in our lives; it’s natural to wonder whether “this time” they should also influence our investment decisions.

 

Metis Ireland has an Evidence Based approach to investing. We therefore believe that the current investment environment is no different to any other period in stock market history and our views are supported by decades and volumes of robust research. To best pursue your personal lifestyle goals, we must continue to consider the latest news within the greater context of how global capital markets have delivered their eventual returns.

 

Our rational selves understand this. But, as Georgetown University finance professor James Angel observed in a recent Wall Street Journal article, “One of the open secrets of the financial-services world is that we’re also in the entertainment and gaming industry.”

 

Building and maintaining a globally diversified portfolio is usually neither fun nor entertaining. It’s mostly just boring to stick to your well-crafted Metis LifePlan, year in, year out.

 

Here’s a fun stat from the same WSJ article to remember next time you’re tempted to bet against the proverbial house by guessing where the market is headed next: “Since 1928, the U.S. stock market has risen on 54% of days, 58% of months and 73% of years.

 

Our goal is to keep those investment odds in your favour. It may not be as entertaining, nor is success guaranteed, but all evidence suggests you’re best off investing in the house and its expected favourable outcomes, rather than placing concentrated bets on every hand played.

 

“The distinction between an investment and a gamble lies in the odds of success.” WSJ article.

 

As always, please get in touch any time we can help you explore current market returns as they relate to your financial goals – or with anything else that may be on your mind. One sure bet you can make: We’re always happy to hear from you and we’re always ready to help!

 

#StickWithThePlan

 

Keith Matthews
Private Client Manager

 


 

 

Disclaimer

Metis Ireland Financial Planning Ltd t/a Metis Ireland is regulated by the Central Bank of Ireland.

All content provided in these blog posts is intended for information purposes only and should not be interpreted as financial advice. You should always engage the services of a fully qualified independent financial adviser before entering any financial contract. Metis Ireland Financial Planning Ltd t/a Metis Ireland will not be held responsible for any actions taken as a result of reading these blog posts.

Disclaimer


Metis Ireland Financial Planning Ltd t/a Metis Ireland is regulated by the Central Bank of Ireland.


All content provided in these blog posts is intended for information purposes only and should not be interpreted as financial advice. You should always engage the services of a fully qualified independent financial adviser before entering any financial contract. Metis Ireland Financial Planning Ltd t/a Metis Ireland will not be held responsible for any actions taken as a result of reading these blog posts.