A decade on from the collapse of Northern Rock and the start of the financial crisis, what have we learnt?
Well firstly – despite the panic, hype and drama, we are still here. Money is still being managed and the markets have recovered.
Secondly, those that had the fortitude to stay the course have ridden out the storm. Sometimes investing is not for the faint hearted, but short term sales and buys to ‘time the market’ doesn’t pay off.
Those in well diversified portfolios with suitable asset allocation saw losses limited to levels of around 12% rather than the 31% loses that were seen in the FTSE 100 alone. These portfolios have therefore recovered quicker and this underpins the importance of regular asset allocation reviews and choosing an investment portfolio that suits your attitude to risk.
Finally, even though we all hear in the news and from regulators that the financial and banking markets systems and controls are now much better – rebuilding trust takes time and this is still an ongoing issue.
Trust after all is what matters to investors and clients and what matters to us as financial planners when choosing investment companies.
At Magenta we work hard to ensure that we communicate well and build trusted relationships with all our clients, contacts, third party connections and local community.
Better communication and a more open and honest culture about money and financial planning is the only way to avoid misunderstandings, mistakes and disappointment for all involved.