RETURN TO THE 1970s

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RETURN TO THE 1970s

There has been a fair bit of talk about aspects of our current political rhetoric that threaten a return to the 1970s. Whilst my early childhood was pretty care-free in that time, there is little of the 70s that I would welcome back.

Insert a film set in the 70’s. A bleak story of a character that everyone’s limited television of the time cannot fail to recognise. “Funny Cow” has a title to offend and a story that will offer little other than despair as it pushes all the stereotypes and clichés of the time. The miserable family existence that passes for life in a northern town. The wife-beating, loud-mouthed husbands and the hollowed shells of wives that have turned to the new prison of alcoholism. Yet sadly this is very close to her story.

Solomons IFA review of Funny Cow the movie

A galaxy far, far away…

If you are inclined to revisit the 70s then this film is a reminder that it really is best left consigned to the past and a collection of good memories when we were all younger. The times were very different and have thankfully changed for the better. It seems like a long time ago… a galaxy far, far away… yet in practice it’s just 4 decades ago, closing in on 5. In reality that is the sort of time that most investors save and then live off their investments.

Short-term memory

The changes in our lives are not always easy to see but flipping through your photograph albums (remember them?) is a useful reminder of our journey. When it comes to investments, the opposite happens. We are constantly bombarded with a moment by moment update of the markets, what has changed in the last 5 minutes, rarely does anyone report or assess the long-term value of investing, billboards, newspapers, emails and websites are all set to the short term, as if this tells us anything of value. In reality the valuable information is surely only the long-term results. What has happened over not 3, 6 or 12 months, but over 10, 15, 20, 25 years. However, that requires a patience that most of us have been taught to ignore.

Here is the trailer for “Funny Cow” it’s well acted, (Maxine Peake is very good) but frankly unless you want to watch misery unfold for a lengthy 102 minutes, (the irony isn’t lost on me) a better use of your time would be to sort out those photos you still haven’t put into an album… or had one printed.

Dominic Thomas
Solomons IFA

You can read more articles about Pensions, Wealth Management, Retirement, Investments, Financial Planning and Estate Planning on my blog which gets updated every week. If you would like to talk to me about your personal wealth planning and how we can make you stay wealthier for longer then please get in touch by calling 08000 736 273 or email info@solomonsifa.co.uk

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RETURN TO THE 1970sDominic2025-01-21T15:53:25+00:00

SHREDDED

I wonder if you have seen the video of the moment that a Banksy piece was shredded as soon as it was sold. There has been speculation about whether this was simply a stunt or a genuine attempt to expose the folly of the art world. It does not matter, nothing will change. The world we live in is obsessed by fame and will spend vast sums to share in its light. It is always something of a mystery that so many will be taken in by so few.

The financial services world is no different. Obsessing over performance that happened and marketing investment gurus or fund manager as stars. Fund Managers are actually given stars by ratings agencies. Those same agencies that told us all that day was night when it came to “creditworthiness” before the credit crunch.

Drawn to Success

Time has moved on, memories fade. Promises of lessons to be learned have come and gone. We are still lured by the glisten of success. Little has changed to investor behaviour. It is about as bad as it has always been. We may have some new terms or names for it, may even be able to spot it a mile off, but few are willing or able to adopt behaviours that are actually successful.

To be a successful investor you have to take a long-term view. You ought to hold a high proportion of your portfolio in a globally diversified portfolio of equities, bought as inexpensively as possible and held, ideally within a wrapper that enables you to choose how and when you draw money to suit both your circumstances and taxation. That is pretty much it…

You can attempt to beat the market, through selecting specific stocks/shares but remember that this has at least two key decisions – when to buy and when to sell. Few people achieve this with any repeatable success. They will tell you that they do, but the truth is rather different. Conveniently forgetting their losses which make up their averaged net returns.

There will always be someone willing to forecast precisely what will happen in the future. In a planet of over 7 billion people, there are plenty of them. Many will promote their views as alternative or counter-narrative, pandering to your sense of doom, or throw so much money and impressive glossy statistics at marketing a theory that you come to believe that they really are onto something different. Occasionally they will be right for a time.

Unvarnished Truths

Here are some truths. If you plan to withdraw money within the short-term, bank it, do not invest it. If you wish to build the value of your money so that you have a shot at financial independence, invest. Invest cheaply, invest long-term, invest heavily in equities, invest globally. Invest with an understanding of taxes. If you want to give yourself a good dose of anxiety, look at your portfolio on a regular basis. If you want to enjoy life, don’t – but have a plan and make sure that someone is monitoring yours.

Normal and Ordinary Perfection

Remember that market corrections are normal, crashes are normal, booms are normal. We do not know when and mostly do not know why. You cannot control the markets, it is impossible to time investments perfectly in a repeatable way. The same cannot be said for Banksy, who timed his (or her) shredding of “Girl With Balloon” to perfection, shredding it… whether the value has depreciated or in fact appreciated is a debatable point and only time will tell…

Dominic Thomas
Solomons IFA

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SHREDDEDDominic2023-12-01T12:17:46+00:00

Nothing bad happens when its sunny, right?

Last night I was at the UK premier of Parkland as one of the films in competition at the BFI London Film Festival. It is the story of the JFK assassination, which happened nearly 50 years ago on 22^nd November 1953. Those over the age of 50 will almost certainly remember where they were when the heard the news of his death. This film is not about JFK himself, neither is it one for the conspiracy theorists. It is the story from the perspectives of locals who were there, in particular the medical staff at the Parkland hospital in Dallas, who attempted to save his life.

Is the conspiracy theory right in the new JFK film Parkland?

It’s an interesting film, and reveals some rather strange conversations between Lee Harvey Oswald, his mother and brother, however it does not really reveal anything new about a conspiracy theory. The director, Peter Landesman introduced the film. He made some interesting observations about “iconic moments in history” that get revisited, often in the hope that the ending will somehow alter. He also observed that many “bad things” happen out of the blue… indeed on a bright blue sky day, a day when surely nothing could go wrong. It was a reminder that of course, “bad” things happen all the time – the time, place and weather are largely an irrelevance. However looking to the sky for signs that things are going to be good (or bad) in life is little more than a rather primitive approach – unless of course you are simply attempting to predict the weather for the day.

What signs should investors look for?

Investors would do well to take heed of the warning not to read too much into “the signs” about stockmarkets or indeed anything that impacts our economies. I reckon that I have now heard most theories in relation to investor euphoria or depression, ranging from the price of corn to the number of coffee shops, goals scored or skirt length as “indicating signs”. The reality, is that life is full of risk, full of the unknown, frankly that is what makes it life and “fun”. Knowing the future is really more of a curse if you stop to think about it. So please beware of those holding themselves out to be foreseers of economic doom/oblivion/meteoric rise, they are simply guessing. There are ways to have a successful investment experience that do not involve guessing or living in fear of what may (or may not) happen. Yes, unforeseen “major events” do occur, but in reality a long-term perspective encompasses these. The real conspiracy is that few understand that they don’t need to play the fear and greed game.

Parkland will soon be available at UK cinemas, with the expected release date to coincide with the 50th anniversary of the assassination on 22 November.

Dominic Thomas: Solomons IFA

Nothing bad happens when its sunny, right?Dominic2025-02-03T14:13:37+00:00