Kayser Wealth Strategies

Altair Asset Management has recently decided that investment markets are too risky and has decided to sell everything and return client’s investments back to them.

Brave call or stupid?

It reminds me of the guy from Royal bank of Scotland (RBS) who in January 2016 told his clients to sell everything because 2016 would be a ‘cataclysmic year’. It grabbed a great headline, but far out was he wrong! Australian shares were up 11.8%, and International Shares (unhedged) were up 7.9%.

Additionally, those that sold out probably had to pay capital gains tax on any profits they had made.

In January 2016, some clients queried whether we should also convert investments to cash, and I advised them not to.

So this time around I thought I’d ‘date stamp’ my thoughts about Altair Asset Management’s headline grabbing call, so that we can easily come back to it in the future and see how their prediction has turned out.

For the record I believe that Altair Asset Management’s call is wrong.

As at today, markets are as follows:
– Australian S&P/ASX 200 index – 5711
– USA S&P 500 index – 2416
– USE NASDAQ – 6210
– UK FTSE 100 – 7548

Let’s keep an eye on this and see who is right, bearing in mind that we need to watch the price of shares (index values above), dividends that you’ll receive, and also the fact that not selling out means that we don’t have to pay any capital gains tax!

Remember investing is a long term game, not a short term one!

Regards

David
30/5/17