Are you a Potato or an Egg?

September 2021

At boiling point one goes soft, the other hard. Under the same circumstances different people act in different ways, which is why the world is made up of different people.
This all starts with the “fight or flight” syndrome that existed in cavemen.
Which reminds me of the story of two men being chased by a lion, one man said to the other man “I don’t think we can out run a lion” and the other said “I don’t need to, I just need to out run you”.
In financial terms there are thousands of investment funds to choose from and millions of combinations if you are putting together a mixed portfolio of funds, so it’s not surprising that some portfolios will dramatically outperform others.
Different funds act in different ways, in the same scenario.
Taking the scenario of potatoes and eggs, when the economy heats up, changes to inflation and interest rates effect the valuation of different shares.
Some shares are known for holding value and others for growth, so again they react differently depending on the heat in the economy.
With an established
in-house investment team we can make changes whenever and however it’s needed to all of our client portfolios, which makes us an experienced wealth management practice.
We do not periodically look at a client’s holdings to see if that client’s funds need a review, it’s constant (funds can go down as well as up).
Left too long it’s often too late, rather like the potato or egg, not being constantly checked and going past how you want it.
How does your financial planner or adviser work and how do they react to pressure and opportunity?
Are they a soft potato or a hard egg? Or something different such as mash, chips, scrambled or poached?
Do they know what you like and act accordingly?
There is, of course, more than one way to react to a changing situation, including doing nothing.
Inaction is sometimes the right action, but the decision should follow a timely review.