What In The World Is Happening?
A market re-evaluation?
Following a strong run over the past number of years, we appear to now be experiencing a very broad-based revaluation within most financial sectors and markets. This is a very normal event and occurs at least annually.
At the start of October, US unemployment numbers were released which sparked a sell-off in US Treasury Bonds. This spooked equity investors and bond investors alike. Essentially, no sector was spared.
Is this the beginning of the next big down market, or is it more like February of this year, where we saw a quick sell-off followed by a gradual recovery? To be frank, it’s too early to tell!
What we do know…
We are well positioned across all our portfolios. We do not believe (at this time) there is anything sinister within the markets to expect a major correction. If anything, volatility can offer exceptional buying opportunities.
Barwon Financial Planning will continue to follow our process – we progressively sell more expensive assets and buy into assets as they get cheaper. We stay diversified when uncertainty is high, and concentrate positions when things get really attractive. We follow this process because, irrespective of which path markets take over the long term, following this discipline will control the risk in your portfolio and maximise return within those risk limits.
As always, if you have any questions or concerns please let us know.