If ever there were a more apt statement as to what has been going on in the governance of our country in the past few weeks, this is it. Plato was unusually prescient in predicting this of Liz Truss over 2000 years ago. It’s a shame those that had the privilege to decide upon this matter were not in possession of even 1% of Plato’s nous.
You can fool some of the people enough of the time to get yourself into office, but the majority will spot a doughnut with the holes in their plans quickly, and so there will be a consequence. Our weakened economy has been battered by these consequences, that have forced up bond yields, leading to higher interest rates.
The result of this, and all occurring within weeks, is higher mortgage payments making it unaffordable to move, much reduced defined benefit pension transfer values for those wishing to retire and massive volatility in share values. The latter is what is being talked about in the news when to the stoic and knowledgable investor this is but a blip to be acknowledged, accepted and discarded from thought. We will review this later.
The former, are things that affect real lives. It’s a shame that these politicians don’t have to sit in rooms with people and explain how their actions have affected the lives of those sitting in front of them. I have had to do that for them several times recently. If they could see the shock and grief people go through at these points, perhaps they would pick up a book on economics and try to think things through a bit better?
If any of you feel like your plans have been overly affected, please get in touch. There is always another way, my friends. We will make it work.
At times like these, it is important to remember the work of the stoics. I realise a cantation of classical philosophy will be conflated with Boris, but the wisdom of humanity’s greatest minds must be open to all.
The stoics believed in positivity and honing your character to withstand external events. If ever there was a time to revisit these philosophies it is now. We will also revisit our investment philosophy in the light of the work of Seneca and Marcus Aurelius.
Great companies of the world
You invest in a globally diversified portfolio of the biggest companies in the world. They are run by people whose main aim is to make a profit. We know that, on average, these great companies continually and persistently do that. The directors of those companies are not sitting their with heads in hands bemoaning the issues foisted upon them such as inflation, higher interest rates, wars and, in the UK, economically ignorant leaders.
They are thinking “these are the problems. How are we going to maximise profit in spite of them”. And so they adapt and continue in their search of new markets, innovation of new products and maximising efficiencies.
It has forever been thus. This will not change. This is what drives the long term rise in equity returns. The beaming light of capitalism’s ability to turn a profit is dimmed by the clouds only temporarily.
For you as an equity investor, now is the time to double down and prove yourself. The great companies of the world are on sale and you can buy their future profits now at a discount. When you look back in time in the future, if you do nothing, you will see this as an opportunity missed. It is surely that. A massive opportunity begging to be taken advantage of. Prove yourself.
For those of you unable to comprehend investing more, but maybe considering selling out at stupidly low values, I echo Marcus Aurelius. ‘Why is this so unbearable’?
Every time EVER, there has been a decline in values of the great companies in which you invest, they have returned to former levels and then some!
You have enough money for the next couple of years, I am worried about the next 30 for you! The only way to ensure a prosperous and dignified life is to maintain your composure, accept the price of higher long term returns is volatility in the short term and hold your ground. Failure to do this will mean you will be poorer.
This is my position. It should be yours. You are a rock in a tumultuous economic sea. You are sound, steadfast and resolute.
If you are not a rock, you can stand on us. We will provide firm footing and shelter until the tempest recedes.
I do not believe any one of your plans are affected. But if you are concerned, shout ‘help’ from the sea in which you are bobbing and I will run like Mitch on Baywatch, man boobs flying about and clutching a buoyancy aid to get you to our rock.
I am excited for your future and your great plans. You can still do them. Frankly, I’m excited for the future of my Only Fans site full of videos / pictures of me running along the beach with my top off. You see, innovation in the face of adversity! I will be an Only Fans millionaire within weeks.
This article does not constitute financial advice – we recommend you to speak to a qualified financial adviser about your individual situation.
We hope you found this article interesting and useful.
If there are any specific topics you’d like us to cover in an upcoming issue, please let us know by emailing support@lucentfinancialplanning.co.uk and we’ll see what we can do!
This article does not constitute financial advice. We recommend that you speak to a qualified financial adviser 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.
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