Financial News from the Costa del Sol, Andalucia, Spain

It’s not timing the market – It’s time in the market.

Resist being a market timer! Very few people, including professionals, are successful. By trying to time the market, you will potentially miss out on market rallies that could substantially improve your overall return and long-term wealth. Time IN the market, not TIMING the market. Staying the course can prove very rewarding in the long run.

Missing only a few of the best days over the last few years would have had an adverse effect on total return.

Example: US$ 10,000 invested in the S&P 500 index and held over the entire period of 1st January 1997 to 31st December 2006 would have grown to US$ 22,446. Missing just the 5 best days would have reduced that end value to US$ 17,357.

From 1992 to 2007, the UK FTSE all share returned an average annual return of 9.84%. Had you missed only the best 10 days of market rallies your annual return would have been 6.89% and only 2.78% had you not been invested during the best 30 days in that 15 year period. (Source: Fidelity International)

A loss is only a loss if you sell it. Many people lost about 35% of their capital in the crash of 1987 by bailing out in panic. Hindsight shows us that 1987 ended up as a brilliant year for investments and had you invested in January and held until the 31st of December, you would have made over 15% that year.

Establish what your financial planning needs are and set some objectives. Are there other areas that need attention first? Think about what level of returns you are expecting.

Be clear about your time horizon. If you have a medium to long term view (5 years plus) then it really does make sense to consider investing.

Be clear about your attitude to risk. The relationship between risk and reward means that greater long-term returns are often delivered through investments that involve a higher degree of short-term risk.

To discuss these or any other aspect of your personal financial planning call Pauline Bowden now on 95 289 0383 or Brian Berney on 666 670 187 for a private and confidential review.

SPECTRUM IFA GROUP Baskerville Advisers S L CIF B-63/137.020 Correduria de Seguros; Nº de rigistro RDGS J2306;Seguro responsabilidad civil AIG Europe Nº 0131900503.1330 Registro Mercantil de Barcelona, Tomo 35489, Folio 170, Seccion 8, Hoja B-269534