Dear Advisory Partner,
The world of financial services offers you the dream of high returns on your savings that will enable you to lead the lifestyle you want. The dream does not come free, you pay fees either directly or indirectly and whether you achieve your dream or not, the fees still goes out of your pocket.
You pay fees for products and services but the risk of loss or not achieving the desired returns on your savings is borne by you. Obviously, if anyone guarantees returns, the cost is either very high or guaranteed returns are lower than your required return.
We, as investments advisors, are also charging you fees as we have to run a team of analysts who continuously do research to provide you the portfolios that will grow your wealth, We do not guarantee returns and you still bear the risk in your portfolios.
However, we see ourselves as not someone who promises you that you will achieve your dreams by investing on our advise but as your partner who will guide you through ups and downs in the market. The road to growing wealth is definitely not smooth, if some says it is smooth, they are misguiding you. There will be periods of high returns, periods of low returns and periods of very high volatility. The bad periods will test your patience and you will require the hand-holding to maintain your composure and not take any hasty decisions that will hurt your potential to save for the future.
When we give you a portfolio to invest in, we constantly worry about our recommendations as your money is invested in the portfolio. When the going is good, it is nice to bask in the glow of our recommendations but when it gets rough or volatile, we have to make sure that your investments, whose risk you bear, are still going to work for you down the line. We may have to take hard decisions sometimes to lower your risk levels or we may do nothing if our analysis suggests that the portfolio will work for you in the longer run.
The current market is testing us as many of the stocks in your portfolios have declined sharply after touching peaks. In hindsight, we could have booked profits but given that the companies are showing strong growth as well as guiding for a positive future, the stocks are still worth the valuations. Profit or loss booking can work both ways, it may be right or may be wrong. Hence, it is better to take an analytical call rather than just look at levels to buy or sell, as you portfolios are structured for long term wealth creating.
Other stocks have done spectacularly well and that is what a portfolio is about, one set of stocks balancing out another sets in different times. However, doing nothing does not mean a buy, hold and forget strategy. The world is changing too rapidly for businesses and we have to be alert for the changes to keep your portfolio relevant for the future.
We look at you as our partners for as long as you want to stay and we trust you look at us the same way.