Sticking to this proven investment strategy

Founder and Publisher of the Switzer Report
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We had a potential financial planning client who only had $6 million to invest around August last year and while many of us would have loved to be him, he once had $20 million!

That’s why he came to see us, but because he was so pessimistic after reading a whole pile of stories from journalists who know very little and who continually quote doomsday merchants that are either talking up their own investment book or who are simply economists who are bad guessers, he was not up for change.

Missed opportunity

He wanted to play it safe and I could understand his view as a 6% term deposit on $6 million would return a nice $360,000 a year, but I still regret that I didn’t argue with him. I guess there were 14 million reasons – the amount of dollars he had lost – but I am still annoyed because he has missed the bounce in the local stock market from 3,863.9 on September 26 last year to 4,360.4 where the S&P/ASX200 index is today. That’s a 13% bounce and so if this potential client had even slipped $1 million into an exchange-traded fund (ETF) he would be up $130,000 in only five months and that’s ignoring dividends.

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