Good Morning Reader,
Unfortunately, I am old enough to remember the infamous Black Friday of October 1987; a young 20'something year old working at National Mutual Funds Management.
I remember vividly the looks on the faces of investors coming through that day, urgently seeking to redeem funds that had dropped significantly in price.
With the passage of time, that experience taught me that panicking is costly. Knowing your investments, knowing why you invested, and controlling your emotions is paramount.
Eventually, confidence was again restored to the markets. People realised that the commercial world would continue to function, producing goods and services that people needed, with the good businesses earning substantial profits over the long term.
Given the recent market volatility, it appears we have not learnt well from history. Emotions still rule the market crowd. A wise man once said "there is nothing new under the sun".
At Eden, we have cautioned clients about investing large amounts of capital over the last 12 months, and with good reason. We were concerned about overpaying for investments bloated by debt-fueled market speculation. The market has since retreated back to early 2007 levels. We thank those clients who have expressed their appreciation of our patient stance.
Looking to the future the message is the same as it was back then. Focus on good buying opportunities when they are presented and ignore 'market noise' as a barometer of investment success.
We look forward to better buying opportunities in 2008.
Warm regards,
Robert Palma - Eden Wealth Management
Many of you could be forgiven for feeling like the reporter Phil Connors (aka Bill Murray) from Ground Hog Day; once again we are on the tail end of a market "sell-off", and the All Ordinaries is back to where it was at the start of 2007.
Many questions are now being asked, "Was that the final market cleansing we had to have?", "Is this the fist sign of a major bear market stampeed?", "Are we now in the midst of a sucker rally?".
Again, with a long term value investing focus, we do our best to provide some grounding perspective.
Being a 'stand-out' investor, often requires 'stand-out' thinking.
The key principles outlined in this article is arguably THE MOST CRUCIAL concepts to grasp for long-term investment success.
Our investment focus in this report is on the rising global demand for energy.
We also review one of our favourite investments - Woodside Petroleum.
Contact Us
Newsletter