Alan Steel
01506 842365
MENU
  • Home
  • About Us
    • Close
    • About Us
    • What We Do
      • Close
      • What We Do
      • Our Services
      • Our Philosophy
      • Our Awards
      • Our Reputation
    • Who We Are
      • Close
      • Who We Are
      • Meet the team
    • Our Approach
    • Financial Planning
  • Testimonials
  • Investments
    • Close
    • Investments
    • Investment Advice
    • Portfolio Building
  • Pensions
    • Close
    • Pensions
    • Retirement Planning
    • Early Retirement
    • Pensions as simple as...
  • Tax
    • Close
    • Tax
    • Tax Advice
    • Tax Planning
    • When I'm Dead and Gone
    • Inheritance Tax
    • HMRC Digital Accounts
  • Insights & Media
    • Close
    • Insights & Media
    • Letters from Linlithgow
    • Informing You
    • Letter from America
    • See us in the Press
    • Master Investor
    • Points of Few
  • Contact Us
Independent financial advisers founded in 1975
Over £1.4 billion client funds under management
17 industry awards for advice since 1989

See us in the Press

Breaking news — sometimes it’s better to do nothing

Sunday, 23 October, 2016

“Don’t just do something — stand there” is a mantra often associated with Ronald Reagan, the US president who personified masterly inaction.  This approach helped Reagan, pictured with his wife Nancy, to resist populist demands that “something must be done”.

Regans

Everyone lost in the race this time, but those who held lost the

Today investors may also gain from a wait-and-see strategy.  Brexit and other surprises have caused me to trade far more than usual.

New research, passed to me by Steve Forbes, managing director at Alan Steel Asset Management, is not encouraging on this point.  It examined three groups of US investors: those who traded less than 10% of their portfolio, known as the “buy and hold” group; those who traded up to 50%, the “actively managed” group; and those who traded more than 50%, the “aggressively managed” group.

I would usually be in the first group but have probably strayed into the second, spurred on by the torrential flow of news.  This is despite the fact that I have no desire to be a “day trader” and regard short-term punts as little different from gambling.  The reason for the distinction is that few shares go to zero but most betting slips are worthless at the end of a race.

Now here’s the really bad news.  Over six months, Forbes tells me that the “buy and hold” group made a small loss of 0.5% after dealing costs, the “actively managed” group were 6% down but the “aggressively managed” lost an average of 12%. It just goes to show that busy bees don’t always make honey and chasing the news can be bad for investors’ money.

Quote courtesy of The Sunday Times
Sunday 23 October 2016

©2023 Alan Steel Asset Management Limited is authorised & regulated by The Financial Conduct Authority. Please note that the Financial Conduct Authority does not regulate some forms of tax advice. Company Registration: SC58014

You should remember that the value of an investment and the income from it could go down as well as up. The return at the end of the investment period is not guaranteed and you may get back less than you originally invested.

The investment services and/or investments referred to in this website may not be suitable for you. If you are unsure we suggest you contact us to discuss matters further. If we believe our services are not right for you we will tell you.

When investing money, whether for income or growth, you are placing your capital at risk as the value of investments may vary, so you could get back less than you started with.

The Financial Conduct Authority does not regulate Tax Advice, Trusts or wills. Alan Steel Asset Management Limited is authorised and regulated by the Financial Conduct Authority. The guidance contained in this website is subject to the regulatory regime of the UK.

The Financial Ombudsman Service (FOS) is an agency for arbitrating on unresolved complaints between regulated firms and their clients.

FOS details can be found at www.financial-ombudsman.org.uk

Alan Steel Asset Management Limited are not responsible for the content of external sites.

  • Cookie Policy
  • Privacy Policy
  • Website terms and conditions
  • Tax Services Privacy Notice
  • Contact Us

This site uses cookies. By using this site you agree to the use of cookies. Read our Cookie Policy