Investment portfolio performance in the 'new normal'
In the midst of uncertainty, there is always opportunity. Here are some investment highlights we have experienced and are considering at Hallam Jones:
- In April, we discussed the road to recovery for the global economy would be long, reflecting the reality of the economic ‘sudden stop’.
- At that time, global share markets were 22% off their lows, but still down -15%.
- A typical Hallams Jone client was down just -6.5%, highlighting our success in mitigating the downside.
- Given company valuations were significantly lower and interest rates near zero, there will be large capital flows into share markets.
- Some five months later, the typical Hallam Jones client is now up 7.9% for the eight months to the end of August, outperforming clients of our major competitors, and the New Zealand share market.
- In a few months from now, the United States and New Zealand elections will be behind us and there is a good chance that we will be on the verge of an approved COVID-19 vaccine.
- The journey will remain volatile.
- For those clients with long-term investment horizons, the best strategy is to look beyond the short-term and ensure your asset allocation reflects your personal circumstances.
If you would like to help to protect your investment portfolio, talk to our team today.