There is time for everything – even emotion

01.04.2021

I must confess to having had a bit of a dilemma last Friday evening. France hosted Scotland in the final game of the Six Nations and who to support as an Englishman? The first emotion of “get behind the Sweaty Socks” was then swiftly followed up with a stronger emotion “Allez les Blues” because a France win by a certain margin meant Wales would come second overall and there would be much crying and gnashing of teeth down in the valleys.

Growing up in the 70s on the back of countless Welsh hidings has instilled in me such an unwholesome knee jerk reaction of ‘anyone but Wales’, which I am the first to agree with is not to my credit. But there you go – you get emotional about matters and you invariably make the wrong decision. Having had a stern word with myself I painted my face blue, sang Flower of Scotland like a warrior from Brave Heart, and watched an epic game to crown an epic tournament. Well done Wales (yes really) and well done Scotland who won the game at the death in dramatic style and came of age.

Many get emotional over investments both on the upside and on the downside, and indeed if they drift for too long. Emotion and investments become a heady cocktail, which leads to poor decision making. We have begun planning for the May rebalance when all portfolios are realigned back to their original asset allocation, an exercise that happens twice a year. Having zero emotion about such an important decision means that there is no soul searching about market timing or navel gazing about how much to sell and how much to buy. We have etched the investment process into tablets of stone and implement it at specific dates in the year. We complete comprehensive ongoing research and due diligence on the portfolios but will not be sucked into short term tactical decisions.

True to our word though when we stated earlier this year that any changes in our portfolios would have to favour a sustainable mandate, we will be adding the Liontrust Sustainable UK Growth fund to the IronBright Core Satellite range and introducing the Stewart Investors Asia Pacific Sustainability fund to the IronBright Sustainable range at the rebalance. We like both Liontrust’s and Stewart Investors basic belief that those companies that will survive and thrive are those which improve people’s quality of life, be it through medical, technological, or educational advances.

Most clients who I have spoken with over the past year have accumulated surplus cash, partly I would like to think down to our investment prowess, but probably more so because there has been very little to spend it on. With the Easter break only a few days away, the prospect of Summer on the horizon and the joyful promise of further relaxing of ‘The Rules’ even I am, on reflection, becoming a bit emotional …. nearly time to go face down in an enormous chocolate egg and spend a bit of accumulated cash planning a family holiday…. what could possibly go wrong!

From me and all of my colleagues may I wish you a very happy Easter.

Steve Brady

Steve Brady
Director