This is a question we were asked recently. It is a completely rational question, after all UK inflation was recently at its highest rate in 40 years.
However, it is a question from someone who does not yet fully understand our investment philosophy. It really doesn’t matter whether the question is, “how should I invest during…
- High inflation
- A war in Europe
- Rising interest rates
- A global pandemic
- Etc etc
The answer is always the same. We at Best Life Financial Planning invest into a globally diversified portfolio of productive businesses, run by some of the smartest people on the planet. We invest into human ingenuity. To be more specific, we invest into global equities/shares. Some of us will have an allocation to some defensive assets too, to reduce the daily changes in value of our investments.
We invest with the knowledge that the world has progressed and achieved astonishing things, because of the very thing that we invest in. Matt Ridley’s ‘The Rational Optimist’ provides a fascinating account of how the world has progressed due to Human’s ability to specialise in their trade for the benefit of everyone. At Best Life Financial Planning, we are not merely hoping things go the way we want, we adopt a rationally optimistic and academically driven philosophy which has historically delivered fantastic returns to investors who have the temperament to stick to the plan. Clearly nothing is guaranteed, but we have the weighty evidence of 200 years of historic market data on our side.
We do not react to the above listed events, that is the game of the person who does not understand investment risk. The person with a limited understanding of investment risk will always be reacting to the next crisis. They will be forever trying to find the next new thing and driving themselves mad in the process. For our clients, we have suitably positioned your portfolio in line with your attitude to risk and capacity for loss. They should block out the noise and be free to enjoy their life without the worry of how the current crisis de jour is affecting their investments.
This article is for retail clients and is provided for information and educational purpose only and does not constitute advice.
The value of your investment can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.
Best Life Financial Planning Ltd is an appointed representative of Best Practice IFA Group Limited which is authorised and regulated by the Financial Conduct Authority.
What our clients say
Joe immediately put me at ease with his friendly and approachable manner. I trust Joe and his advice, and am confident that our retirement is in safe hands.
I look forward to my annual review meetings, but I also know that Joe is at the end of a phone (or an email) if I have any concerns in the meantime.
I would have no hesitation in recommending Joe to anyone.Mrs S Quinlan