The debacle with tennis great Novak Djokovic was a welcome change first up in the nightly news and a nice reprieve from the COVID case numbers. Alas, we are back to COVID case numbers again.
Perhaps the recent turn-around in global share and bond markets might get some airplay. Increased inflationary risk is not only a global issue anymore and we anticipate this whipsaw volatility to continue.
Over the last 2 years we have seen some great gains from investment markets but amidst a large amount of volatility and an unprecedented fiscal stimulus that has driven many asset markets.
A deadly combination of Fear of Missing Out and lock downs has seen the emergence of share and crypto currency trading becoming more publicly mainstream. This has been augmented with an unprecedented level of investment debt that is secured by these assets, termed margin debt. This last point has the potential to cause significant disruption and potential value erosion from investment markets as unwinding such a position will mean a lot of forced selling.
This is why we concentrate on your individual goals when building portfolios as meeting these goals is the key determinant. What investment markets do is outside our control but managing potential risks by way of diversification and adequate risk to meet your goals are our key defence strategies.
Although you won’t see us invest in cryptocurrency, the reality is that we all will generally have exposure to digital assets such as cryptocurrency indirectly such as with companies like Tesla and many others.
We came across this article recently which has been written by a very well-respected investment specialist on crypto currency, that articulates a lot of the same views/concerns that we have.
General Advice Warning
This article does not take your specific needs or circumstances into consideration, so you should look at your own financial position, objectives and requirements and seek financial advice before making any financial decisions.
