What happened last Quarter?

You may have noticed that your investments have not fared as well over the last few months as they have in the preceding months. So what happened?

As always, lots happened. There were continued wars, elections, and the onslaught of Artificial Intelligence almost everywhere we turned. Is anyone sick of “chatbots” yet? On a financial front, global markets grappled with the same issues. Locally, Australia struggled with slow economic growth and high inflation. Some sectors performed well, but resources and property were weak due to low demand and high housing prices.

In summary, the last few months were rather flat, and this has been borne out in your investment returns. However, keep in perspective the huge gains from last year, particularly the last half of last year. If you look at the last 12 months on a rolling basis, returns still look very good.

A better question might not be what happened but what it means. And this may seem disappointing, but the answer is not much. The ups and downs and sideways movements are not only completely expected but necessary. If these things didn’t happen, they wouldn’t be investments.

Perhaps the best question might be, what do I do? At least for my clients, what you shouldn’t do is fret about your portfolio, because it’s not what matters. Remember the discussion about buckets? It’s not just theory. These ups and downs have been fully anticipated in the construction of your portfolios.

What you should do, is stay focused on what’s most important to you. Your lifestyle, your family, your goals and plans. Enjoy life – I’m certain it is meant to be that way.