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Robson Consulting Group will be
closed from Wednesday 24th December 2008 until
Friday 9th January 2009 (inclusive).
Our offices will
reopen on Monday 12th January 2009.
The partners and staff
of Robson Consulting Group take this opportunity to
wish you a very Merry Christmas and a prosperous New
Year.
Robson
Consulting Group
With over 26 years experience in Business
Management and personal wealth creation, Robson Consulting
Group is your "one stop shop" to all of
your Business growth and personal wealth creation
needs.
Why are we talking about the
long term?
Global market
volatility brings a range of challenges, but when
downturns come around there is always an emphasis on
the long term - why?
The long term counts
It will depend on your
personal investment strategy and goals, but everyday
ups and downs in the market don’t necessarily
reflect the underlying quality of the investment.
Even larger scale market volatility, such as across
international markets, doesn’t change the good
quality of an underlying investment. The unit price
or share price may decline, but if the investment is
good and it matches your growth strategy, in many
cases the investment will remain a suitable way to
create wealth.
Short-term volatility – whether for a day or even a
couple of years - usually reflects the panic and
personal choices of millions of investors. Impatient
investors don’t want to wait, or can’t wait, to see
the full extent of any returns.
Riding out short-term fluctuations allows the
quality investments to shine through the tough times
and come out the other side with solid returns.
Short-term investors have a more difficult task,
as returns in the short-term can be unexpectedly
volatile.
What's your big picture?
Consistent meetings
with your adviser can draw attention to results and
comparisons, perhaps to give you a different view of
overall returns.
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For example, consider
that (as measured by S&P/ASX 200):
- Over the past six months, to 22 September 2008:
The Australian share market is down 0.33%.
- Over five years, to
30 June 2008: The Australian share market is up
about 17%.
- Over 20
years, to December 2007: Australian shares delivered
a gross return of 12.7% a year.
Look past media
hype – what are your goals?
Every area of the
market has its own developments and methods of
moving forward.
The economy is
enormously complex – particularly when you factor in
every possible investment - and not even market
analysts know for sure what will happen next.
However, sometimes
news is presented as so shocking that it is hard to
look past. The reality is that media headlines don’t
necessarily show the real situation or impact, and
certainly doesn’t claim to show any insight into
your personal situation. The media sells excitement!
We all need to be the
editors of our own news – rather than worry
unnecessarily, first get as much information as you
can, including a discussion with your adviser before
making any decisions. That way, the news and
information is personalised to your own situation.
What you can
remember…
Diversify –
reducing your dependence on just one area of the
market can sometimes balance the ups and downs of
the market more effectively. This might mean
spreading your portfolio over a range of different
asset classes, such as shares, fixed interest, cash,
property, or across different countries and
investment managers.
Short-term market fluctuations are not a good
measure of the long-term quality of an investment.
Reviews with your adviser will help you stay on top
of your goals and investment needs – and may even
help you sleep better at night during a market
downturn!
Changing investments in a panic can produce
unnecessary risks and loss of long-term benefits.
Know your own goals and strategy - Everyone
invests for different reasons - while one investor
wants long-term financial security for retirement,
another investor is saving a deposit for a home.
This step can be overlooked when people start out,
but your goals will affect the types of investments
you choose, and can help you make decisions
throughout the life of your investment as well.
See your adviser - Talk to your Count adviser
about how to get the most out of your investments,
and how to create a portfolio suited to your needs,
timeframe, and goals.
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