Understanding Today’s Markets: What I Know Right Now and What I Want You to Know

Investing can sometimes feel like trying to read a foreign language, especially with markets constantly shifting, news coming out every minute and social media opinions. Whether you’re a new investor or just want to feel more confident about where your money’s going, here is what is on my mind.

How We Approach Investing

Markets are NOT perfect – but they are beautiful. Prices go up and down, dividends come and go and come again and sometimes things get a bit out of balance. That’s not a bad thing, it creates opportunities. Opportunities reward those with a plan, process and patience. Think of it like shopping for groceries: sometimes, you find your favourite brand on sale. The trick is knowing when to grab that deal.

So instead of picking one approach and sticking to it no matter what, lets mix things up, adding and removing based on what we believe will offer the best balance between risk and return. Diversification is vital and a good blend is your friend.

 Why Diversification Matters

You’ve probably heard the phrase “don’t put all your eggs in one basket.” That’s the idea behind diversification. We spread investments across different types of assets (like shares, bonds, property, alternatives, cash and others) and across different countries and sectors. This helps reduce risk. If one area struggles, another might be doing well: so you’re not relying on just one thing.

Choosing the Right Fund Managers

I don’t believe that one person or one investment company can be the best at everything. So when creating your investment statement (your strategy or plan or framework or whatever you want to call it) carefully choose different fund managers with different strengths but always with a solid track record. We’re constantly checking to make sure they stick to their investment approach, manage money properly, and aren’t making sudden, risky changes.

Understanding Risk (It’s Not Just About Losing Money)

A lot of people think “risk” just means prices going up and down and when it is down I have lost money. But to me, the real risk is losing money that you can’t recover. That’s why it is vital to focus on building strong, well-balanced portfolios made up of various assets. It is vital to blend together things that don’t move in the same direction at the same time. It’s like mixing sweet and salty in a recipe, you get better balance overall.

Timing the Market? Not a Good Idea

Many people think they can time the market.  You can’t! Getting in and out at just the right moment. But the truth is, missing even just a few of the best days in the market can really hurt your long-term. This chart shows that staying invested, riding out the ups and downs, almost always leads to better results.

Source: Bloomberg Finance L.P., Momentum Global Investment Management, as of 14 March 2025.

Imagine skipping the best 5 or 10 days over 50 years. You’d miss out on a massive chunk of growth. That’s why we say: it’s not about timing the market, it’s about time in the market.

In the End, What This Means for You

Whether you’re saving for your child’s education, planning a future home, or just trying to grow your money over time, the key is to stay calm, stay invested, and stay diversified. With the right mix of assets and ongoing guidance, your investment plan can weather the ups and downs.

Make sure to always consult with a professional with experience and knowledge.