Have you converted your portfolio to cash? Breakfast with our finance guru.

Cash portfolio 4 Nov

Have you converted your portfolio to cash? Breakfast with our finance guru.

Being close to a good financial manager who is closer to you and your needs more than a large fund manager who manages billions from thousands of clients he has never met, comes with dividends.

Over the weekend I had the privilege of being treated to breakfast in an Irish pub by one our financial gurus. Sadly, many tourists to Thailand are conspicuous in their absence and we seem to be the only ones there. His passion for the finance industry always surprises me, let alone his passion for greasy Breakfasts!

Sadly, I was hungover, and he was disappointed to be eating alone, nevertheless he wanted to tell me about one serious point that he feels many financial managers miss out on, in particular going liquid during dips and you would be blind not to see this dip coming:

“It is the USA Election week, and many pivotal Covid decisions are being made across Europe which will almost certainly mean a fall in equities across the board. Now the big boys will just take the hit, and wait for it to correct itself, which means losing a lot of your portfolio value for a while, and just waiting for the correction.

Whilst dips always happens in the financial markets,  all good financial managers expect them and know real gains come with patience and time, however you can become complacent sometimes and  rely on the long ball game, whereas real gains can be made in converting most of your portfolio to cash when you know a huge dip is imminent, because it is here and now, when our clients have liquid cash that you can pick up many stocks with, whilst they are bargain price, plus at the same time protecting your overall fund from the uncertainty of world affairs.

So instead of just absorbing the hit you knew was coming, our clients are not dropping at all, in fact they are taking advantage of the dip and growing because we are picking up some good stock at very cost-effective prices. Blue chips like Barclays and Nat West have never been cheaper right now, and when we know the markets are going to correct soon after, why not use this as a time to buy, then when the correction comes, rather than your fund dipping then rising, we get double the rise for our clients.

This is one of the advantages of a boutique financial house rather than the major institutions many have trusted their pension to, and the big institutions always perform,  don’t get me wrong, but if you can take a bit more time to go ‘shopping for bargains with your cash when you see the obvious opportunities, ’ then you can probably make quite a bit more for your clients.”

“Why did they not teach us this stuff at school?”  I asked. “Seems you don’t have to be a genius to know when a dip is coming, they are like clockwork in many instances, the basics of growth is buying at a good price and selling at profit, you don’t need a university degree to know this do you?”

“Maybe the banks and managers of massive funds don’t want everyone to know what they are doing on a daily basis” Our expert continued, “I mean we didn’t ask to see how my eggs were cooked I just trusted them to do a good job, that’s what the majority expect of their banks and financial managers.

However it is good to see that in 2020 more and more people are learning about finance, and not leaving their future to someone they don’t even know, and it really is not such a gamble in many aspects, the elections in the U.S. come every 4 years, there are many elections that happen across Europe every few months and they all effect the world economy and as long as you keep a broad eye on the news you can get a reasonable feel to when dips are coming.

Good financial management is about balance of high risk and low risk and the rest in between, it is as much about the mix between cash, Gold, equities, property and even Crypto-currencies. Also; you must take into consideration your client for example; a 20-year-old will have a completely different portfolio than a 60-year-old. Everyone is different, this is why we advise only after we get to know their individual circumstances, financial management is never a one size fits all.

Some middle-aged people are scared to meet a financial advisor as they feel they are going to tell them to stop drinking, smoking, eating, get a cheaper house, save more blah blah! And just stop doing everything fun now to retire well, when of course that is not what we are about at all. We are as much about enjoying the now as we are about having enough to enjoy the later.

enjoy life save 10%
Enjoy today with an eye on tomorrow

The most important thing is we hope everyone learns a little from us even if they don’t take our advice and after all that is all we do, offer advice, and where to put funds. If you take our advice and you choose a fund or a pension vehicle, you invest in one the big companies and not us, however we remain on hand to advise on a regular basis.

That and Pensions they already have, when I advise clients, I   often advise better jurisdictions of the management of the funds, the funds never move out of the institutions they were originally trusted to, we just know that managed better by a more pro-active team can reap massive rewards to clients.

At the end of the day the decision is the clients, just like going the doctors for an annual checkup, he might just advise you to ease up on the cigars 0r the whisky, yet at the end of the day it is your constitutional right to enjoy yourself however you see fit, it is just our advisors can help you make financial decisions that make sure you can pay for it later!”

Most of us get regular health checkups and pay a doctor for the service but few get a financial review which is free, go figure?

For a free financial review and no politics contact us here.