Lehmans? Who?
Monday, 15 September 2008
Many private investors may not have heard of Lehman Brothers, the 150 year old financial institution, other than the headline news over the past few days and the effect on markets globally after it said it would file for bankruptcy Chapter 11 protection in the US. Merrill Lynch another of the world's largest investment house over the weekend rushed into a $50bn takeover with the Bank of America…by all reports it appears the financial world is in turmoil. Investors everywhere will feel the repercussions in one way or another.
What action do you take?
Most investors should remember they are invested for the long haul. If today you are questioning whether you should move or remain in cash, or change asset classes, the answers lie in behavioral finance. Investors tend to sell when markets are falling and buy when markets are rising. So to avoid making knee jerk decisions about the credit crisis, your focus should be on understanding your risk and long term objectives.
Building a portfolio based on your risk gives you good foundations to deal with the credit crisis today and whatever else may happen in the future. Assessing your portfolio now is a positive step, especially as any changes mitigate or at least help reduce taxation and also transaction costs are likely to be lower as valuations are lower.
All financial institutions are reviewing how best to handle the news of the day as they do everyday, and if you want to talk about the effect on your portfolio, what action to take and obtain some peace of mind, we will be pleased to help.
Categories: Asset Class Management, Behavioural Finance, Risk
posted by Murray Round Wealth Management @ 15:24,
The Authors
Nicholas Round
Nic is the Managing Director of Murray Round Wealth Management Limited, who seeks to ensure the advice provided is truly independent. Based in Shropshire with clients local, national and worldwide, Nic has strived to find the best possible service for his clients needs, by researching and studying the market, trends and philosophies. Nic strongly believes Asset Class Management will bring his clients Financial Freedom, Independence and Happiness.
Kirsty
Kirsty is our communication guru. Managing information requires considerable due diligence and her passion for organisation gives the clarity we all seek. From Shropshire, with a Psychology Degree and much travelling, she is now back in Shrewsbury...and London often, keeping us all at Murray Round focused.
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