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May update: news, opinion and comment for your financial wellbeing 

Time to take a risk?

With the vaccine programme starting to show benefits in the UK and around the globe, and countries opening up - hopefully for good -  after the worst year in living memory for many businesses, it's hardly surprising economic forecasters are predicting that happy days are here again for consumer spending and economic performance.

Many investors have been feeling the love for a few months now. Those who, a year ago, succumbed to fear and piled all their money into safe harbour destinations, are now chasing all kinds of hot holdings and succumbing to the absence of fear. The Wall Street Journal in its first quarter-end recap summarised the feeling: “If there is a unifying theme to all this, it is that investors big and small showed no fear of risk-taking to start 2021. In fact, they embraced it.”
 
Sometimes, an extra shot of bravery is just what the doctor ordered. “No fear,” you tell yourself, as you enter your first marathon. Or launch a new business. Or hug your university-bound child farewell.
 
That said, to all things balance. No fear can be at least as damaging as an excess dose. That’s often true in life. It’s true in investing too, where it’s always best to maintain an accurate assessment of the potential risks and realistic rewards involved in any given approach.
 
We hope favourable markets continue. But investing is no game of chance. If you were a client of ours last April, you'll remember we reminded you that your disciplined investment strategy was already in place. Your globally diversified portfolio was already structured to help you maximise expected returns while minimising the risks involved.
 
At the time, we encouraged you to stick to plan. Today, we encourage you to do exactly the same. Markets may run hot or cold. The scenery may be different. But your financial journey remains the same.

What does it take to be really rich? 

The Bill & Melinda Gates divorce (and the Jeff and Mackenzie Bezos one a couple of years ago) has thrown a spotlight on the finances of the unimaginably wealthy.

As they have come to realise, it's not how much money you have, but what you do with it, and how happy it makes you, that matters. A lesson learned by countless winners of the lottery jackpot.

We firmly believe that once you have enough to look after yourself and your loved ones, the real measure of how wealthy you are isn't your bank account. It's the choices your money allows you to make and the freedom it gives you in terms of how you spend your time. 

One of our clients summed up true wealth as, "being able to nap whenever I want."

Read more about this in our latest blog. We'd love to know what you think. What does it take to make you feel rich? Drop us a line and let us know. 

Crypto corner


We mentioned cryptocurrencies a couple of months ago when talking about how NFTS (non fungible tokens) are making waves in the art world. Since then bitcoin and its sister currencies have hardly been out of the news. A couple of stories that caught our eye:

Tesla founder Elon Musk is synonymous with any craze surfing the Zeitgeist, so it's not surprising he has the power to move markets for cryptocurrencies. His announcement back in in February that Tesla had bought $1.5 billion worth of Bitcoin, and would accept the currency as payment for a new vehicle, sent Bitcoin's share price soaring to a new high,

Roll forward to May. Musk, mindful of the implications of accepting a currency that uses more electricity than the whole of Sweden to 'mine', reversed the decision, sending Bitcoin's price plummeting by 17%.

The Governor of the Bank of England, Andrew Bailey, joined the debate recently when he commented that cryptocurrencies have 'no intrinsic value' and investors should only buy them if they're prepared to lose all their money.

We tend to agree with the Governor. If a potential investment looks exciting, promises to double your money within days and is promoted by maverick characters who like to see themselves in the news, we'd suggest you turn around and run in the opposite direction!

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