In the first video in our series we answer the questions: what is a market correction and what is a bear market? Brent outlines, in a graphical format, the ‘anatomy of a correction’ and how an investor is rewarded for spending “time in the market”, not trying to “time the market”. This is a huge challenge for investors as we’re all ‘afraid’ that a regular correction (-10% to -20%) will turn into a much larger and longer downturn (termed a ‘bear’ market). It’s much easier, however, when you are confident holding investments in quality businesses and that they will persist and thrive again when the market recovers. We always encourage our clients to resist the urge to panic and sell – we believe you will be rewarded for your discipline.
In the second segment, Brent reviews all the major market indices and how they have performed. From bonds to the various stock markets, from oil and gold to currency. It’s a broad overview that gives a framework and idea for what type of environment we’ve been in so you have context when reviewing your portfolio’s performance. The quarter was a positive environment for all assets but it was a volatile one – April was up, May was down and June was back up again.
In the third and final segment in our series, Brent digs deeper into our model portfolios – our asset allocation positioning, where we remain in our ‘neutral’ weights, our trading in the quarter, how each model portfolio performed in the quarter and in the long-run, and how we’re positioned going forward. Holding investments in quality businesses remains our focus and our disciplined asset allocation process helps us do this. We remain confident that our portfolios will give the results you need to achieve your goals over the long-run.
We remain confident that the key to our clients’ successes are holding quality businesses for the long run and we encourage you to review our model performance in detail within the video or download the slides (PDF’s).