Many people have a misconception about investment. They imagine it to be about chasing the stocks and shares that are performing well, and selling them at precisely the right moment – just before their performance dips.
Some fund managers do operate this way, making short-term decisions and trying to beat the market again and again. Fund managers like these are very expensive and there is virtually no evidence to show that over time, they actually succeed in outpacing the market.
At Callisto Wealth Management, we have studied the dynamics of investment markets over many years. The best academic research, together with our own experience, shows us that there is no substitute for establishing a well-considered written plan designed to help you achieve financial freedom, and then sticking with it.
No chopping and changing. No decisions based on today’s headlines. We simply believe in sticking with that systematic plan for the long term.
When not to act
All our portfolios are based on this systematic approach. The funds they contain reflect the value of the chosen assets, and because they are systematically managed, the costs are very low. We constantly monitor the availability of this type of fund across the world, and will make changes to your portfolio as necessary when better value funds become available, but in general, our attitude is “don’t do something, just sit there”.
The key to achieving financial freedom really is to commit to the long term. Of course, we monitor and review the performance of portfolios and keep you up to date with how things are progressing, but what we don’t do is change tack based on short-term thinking.
This isn’t to say that no one ever got lucky making a short-term decision. But in the long term, the history of investment tells us it’s a different story altogether.