As the year draws to a close, 2017 has been an echo of 2016, where Warren Buffett’s phrase could be applied: “the markets climb a wall of worry”. In other words, despite fears of downturns in the markets, they have continued to climb. If someone had pulled out of the market and sat in the safety of cash, they would have foregone considerable returns.

We know that eventually a downturn will come. However, no-one can say when. By staying invested with an appropriate level of risk – that is one with which you’re comfortable – where you understand that there will be a downturn of a certain amount at some time – your long term return will be greater.

As long as you keep a sufficient level of defensive assets available (money in the bank etc) to cover whatever you plan to spend in the next year or two, you can ride out the downturns.

Wishing you a peaceful and happy end to the year.

at Financial Springs