Insomnia
Deep in the bosom of the gentle night
Is when I search for the light
Pick up my pen and start to write
I struggle,
I fight dark forces in the clear moonlight
Without fear
Insomnia
As we emerge from the Easter holiday you may have felt excited that investment markets have been closed for a few days!
For, there’s has been insecurity over the investment market in the first quarter of 2026, as there has been insecurity across the world. This may, for some of you, have led to some insomnia, as you lie awake at night, worrying about what this could all mean for your life. So far this year, the following has occurred:
- The U.S. abducted the President of Venezuela to put him on trial in Brooklyn
- The President of the United States openly discussed the possibility of acquiring Greenland by fair means or foul. So much so that Denmark sent supplies of blood / plasma there in case violence broke out.
- The Supreme Court of USA said that tariffs imposed over 2025 that caused investment market slumps last Spring were illegal
- There has been a massive shift from the largest companies in the world, especially those that have grown so rapidly on the back of AI, to small, value, emerging markets and 'anywhere but America' companies.
- The United States, deterred from Greenland, got in touch with Israel (or vice versa) and launched over a month (and still going) of strikes on Iran, who then closed the Strait of Hormuz depriving the world of a source of its oil and forcing prices up over $100 a barrel.
So, not much to talk about really, which is tough for a newsletter writer overdosed on confectionery.
Not much for us to talk about anyway, as we are long-term investors that believe that whatever happens in the short term to stock market prices, at the whim of leaders of states, united or not, will be undone by the power of those running and/or working for those companies!
Why? Because people have lives! No matter how much they are interfered with by the megalomaniacs in charge. And those that have lives, generally want the freedom to live them as they please. And to do so, often requires money that is earned by working for companies. As they work to earn more money to maintain and improve their lot and the lots of those they love, so they come across efficiencies. Some that benefit them and some that then benefit the whole world. This is what leads to the fairly constant rise in company earnings. And it is those, and those alone, that determine the value of the shares in the company they work for - and therefore, your investment holdings. If you’re worried about the impact of global events on your investments, then take solace in knowing that such events fizzle out in the end and the world returns to normal.
The only problem is that I can’t tell you when that will be. And neither can anyone else! If you think there is some divine prognosticator out there, that writes for a newspaper, or some other media outlet, then understand that if they did have that power they wouldn’t be doing such things!
Earlier in the year, if you’re a client of ours, I sent out a physical letter to you that described how even though things look peachy, they may very well not in the near future! For it is forever thus. Hopefully, you received it, and if you’ve forgotten or have mistakenly failed to become a full time client of ours, then here is the main message:
General Principles
- We are long-term, goal-focused, plan-driven investors. Our core investment policy is to pursue your goals by investing in broadly diversified portfolios of quality equities.
- We believe that the economy cannot be consistently forecast, nor the markets consistently timed. Moreover, we find no predictable pattern in the way markets react to—or choose to ignore—economic developments.
- We conclude from these beliefs that the only way to be reasonably confident of capturing the full premium return of equities is to ride out their frequent, sometimes significant, but historically always temporary declines.
- We do not react to, much less try to anticipate, economic and/or market events. As long as your long-term goals remain unchanged, so will our plan for their achievement. And as long as our plan remains constant, so (except for annual rebalancing) will your portfolio.
- We believe that long-term compounding of quality equities is the most important force guiding us toward the achievement of your goals. And we're obedient to the late Charlie Munger's dictum,
“The first law of compounding is to never interrupt it unnecessarily.”
Charlie Munger, former VP of Berkshire Hathaway
I hope this timely reminder vaccinated you against any fears or anxieties you may have had at this time. But, if not, here’s some further insulation from the insecurity and insomnia.
Insulation
What follows are 3 layers of insulation that may help ameliorate the anxiety of what’s been happening.
1. The truth about investments
The truth about your investments is in the year-to-date (1st Jan to 2nd April 2026) returns of portfolios most of our clients are invested in:
That’s not so bad is it? The Tracker portfolios are down slightly, but Power Factor is up, due to the rotation into small/value companies mentioned earlier.
2. The three Domains of freedom
Each moment is yours
Your life is yours
Civilisation is yours
George Kinder, the Kinder Institute of Life Planning
I recently met George Kinder, known as the Father of Life Planning, when we did a role play together for some Financial Planning students from Coventry University. He gave me a copy of his latest book, The Three Domains of Freedom. It’s a fascinating and life affirming read about how we deserve each moment, our life as we choose it, and civilisation too. Despite others trying to take the latter from us.
What particularly fascinated me was the point about how we spend the majority of our time reliving the past or worrying about the future. When in fact, it is only the present moment that we can truly experience, feel, see, smell and maybe taste! So we miss the present moment to mull over the past or think about what may happen. Think about this in your thoughts today and you’ll be amazed how much time you devoted to something you can never experience. It was quite a shocking revelation to me actually. When you worry about your investments, you are worrying about the future, for you have enough for today.
Podcast news
George and I recorded a podcast last week. It’s currently being edited etc but will be episode 37 and released on 23rd April.
If you’ve not listened to or watched our podcast, please do! We’ve had interesting guests such as Vicky Reynal, Money Psychotherapist for the Sunday Times, Richard Shotton, Behavioural Scientist who tells us how little control we have over our thoughts and actions, and one of our clients, Ian, talking about working with us.
On 9th April we will release an interview with Greg Davies of Oxford Risk, where we discuss financial planning to financial wellbeing.
Watch or listen to these episodes and more here.
3. The Smallest Investment with the Biggest Return
Here’s something that rarely appears on a balance sheet: the quality of your relationships. These are the things that are most valuable to you and that you need to be worrying about.
Not your professional network. Not your LinkedIn connections. The real ones - the people who know how you take your tea (weak and bitter, like my personality... interestingly the same as Carol Kirkwood the former weather lady), who you’d call at 2 a.m., who make an ordinary Tuesday feel a little less ordinary.
Research consistently tells us that social connection is one of the most powerful predictors of health, happiness, and even how long we live. It rivals exercise, nutrition, and sleep. And yet, when we plan for the future, we almost always focus on the numbers and rarely on the people.
That’s understandable. Numbers are concrete. Relationships are messy. But if a good financial plan is supposed to support a good life, then the relationships that fill that life are probably worth thinking about, too.
Why Connection Gets Harder (Even When Life Gets Easier)
There’s an irony worth noticing: the moments when we gain the most freedom are often the moments when connection slips away.
Retirement removes the daily rhythm of colleagues and conversation. A move to a new city trades familiar faces for beautiful scenery. Children leaving home frees up time but can leave a surprising vacuum. Even success - finally having the resources to do what you want - can feel isolating when there’s no one nearby to share it with.
None of this means something has gone wrong. It just means that the social fabric we once took for granted may need some intentional tending. And that’s a perfectly reasonable thing to plan for.
What Curiosity Can Do
I recently came across a line of research that stuck with me. Neuroscientists and psychologists have found that when someone receives genuine, curious attention - just a few minutes of someone really listening, asking follow-up questions, being interested - the brain begins releasing chemicals associated with trust, warmth, and wellbeing. Not just in the person being listened to, but in the listener, too.
The researchers found that it doesn’t take much. No charm required. No perfect opening line. People who simply asked follow-up questions and got genuinely curious about someone’s answer reported that the conversation took care of itself. They stopped worrying about being interesting and started enjoying the other person.
Here’s what I find most compelling about this: we tend to dramatically overestimate how awkward a new conversation will be. Study after study finds a gap between what people expect to feel (nervous, boring, out of place) and what they actually feel afterward (warmer, more energised, more at ease than they predicted). We are, it turns out, almost always more welcome than we think.
So if there’s an invitation you’ve been sitting on, a group you’ve been meaning to check out, or a neighbour you keep meaning to actually talk to, the research suggests it will probably go better than you expect. That’s not a guarantee. But it’s a pretty good track record.
Small Beginnings Have a Way of Growing
Most of the meaningful relationships in our lives didn’t start with a grand gesture. They started with something unremarkable - a question, a shared laugh, an offhand comment that turned into a real conversation.
Community tends to work the same way. It’s rarely built all at once. It’s built in small, repeated deposits: showing up again, saying yes to the second invitation, lingering after the meeting instead of heading straight to the car (which, for some of us, takes real effort).
A volunteer board meeting becomes a genuine friendship. A neighbour’s wave becomes a weekly walk. A class someone signed up for on a whim becomes the highlight of their week. These things have a way of compounding - not unlike a good investments, if you’ll forgive the analogy.
A Reflection for the Month
Here are a few questions that might be worth sitting with:
- Where in your life do you feel most connected right now? What makes that work?
- Where do you notice a gap; a place where more connection would make a difference?
- What’s one small step you could take this month to invest in a relationship or community that matters to you?
It doesn’t have to be dramatic. A phone call. A lunch. Joining something new. Returning to something you drifted away from.
The return on connection isn’t measured in pounds. But it might be the most valuable investment you make all year.
I hope now you feel fully insulated and ready to face the world, seize the moments that are yours and make your life the one you truly want, for it is yours! If you are able to go and do some good for the world, then you can help shape civilization in the way you want it. Should it be somewhat daunting, why not take 15 minutes, have a cuppa and savour those moments of reflection.
While you're making tea... for those that can’t make tea correctly, the recipe for "Steve’s tea" - the same as Carol Kirkwood’s - is here, in case I or Carol ever come to your house!
Disclaimer: This article does not constitute financial advice. We recommend that you speak to a qualified financial planner for advice tailored to your individual circumstances and goals. Financial markets may go up or down, and you are not guaranteed a return on your investment. Past performance is not necessarily a guide to future performance. Financial details including benefits to the treatment of tax will depend on your individual circumstances and, while checked at the time of publication, may be subject to change in future.
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