Good morning,

 

Markets saw positive price movements last week (more info below) with the S&P 500 passing through the 5,000 point milestone. So does this matter? Well yes, it’s nice that it’s a higher number than before. But more generally speaking – no.

 

Attaching significance to such an event could be viewed as an anchoring bias, where investors cling to arbitrary price levels. Recognising our behavioural biases (we all have them) is an important part of investing. The concept of sticking with the plan and not letting such triggers throw you off track are broadly covered in our ‘Principles of long-term investment’ document. When coupled with consistent investment performance, solid financial advice in such areas leads to the best outcomes for customers over the long run.

 

As always, if you wish to discuss anything in further detail, please get in touch.