How we help. Advice Offer for your family. The share market and bond markets are telling us

How we help. Advice Offer for your family. The share market and bond markets are telling us something. Our retirement webinar. And senator Andrew Bragg is launching our book on 1 April !

Transcript:

Hi and welcome to this Arch Capital update.
First of all a big thank you to all of you.
We have received a lot of introductions and referrals over the last few months. We really do appreciate this, we are in a world with a lot of change, last year particularly was a challenging year and we’re glad that for all of you and anyone you know that we’re able to provide that honest independent advice to help you through it, so again, thank you very much.
We also have an offer for all of your family or close friends, which is complimentary advice service, which includes one or two meetings, in which we can hopefully help them out. Here at Arch Capital we are very family orientated and we are here to help yours out.
Today we are going talk about a few things, particularly a little bit about the market volatility. What we are starting to see (as at Feb 26, 2021) is a bit of a shift. There is always a bit of a warning, when you come into a new year and everyone’s overconfident, the reserve bank says interest rates aren’t going to change for three years and within a few weeks, we see the reverse happening. This is what markets do – this is why we invest we do. We focus on being diversified, we don’t trust the future, we stay well balanced.
Having a look at the NASDAQ, there is a huge run up. Everyone is getting onto tech stocks, everyone seems to be online making money, and then suddenly it dropped. Markets do this all the time, however, you will have a lot of people not knowing what has happened and where all their money has gone.
The valuations of these big tech companies has been high, which in turn has got all these day traders very excited (that’s always a bit of a warning sign). Of course, we would never recommend to chase things like that. This is all speculation, which can be likened to gambling rather than investing.
Now, to interest rates, we can look at a 10-year bond, it has taken off. So when people ask “What is going to happen with interest rates?” – the bond market tells us that interest rates are going up at some stage. This is also the case with the global measures, across the board we have seen a significant increase in these 10-year prices.
If you have a mortgage and you’re and you’re considering to lock it in, probably best to do it now. We’re not going to predict the future, things can change, but the market is telling us that interest rates are going up. Although the Reserve bank says it will not go up for 3-4 years, the market’s telling us sooner than that.
What does this mean for your portfolios? It doesn’t mean we suddenly change things overnight, but it again sticks to our philosophy of remaining balanced, not chasing two or three stocks, not trying to chase the market, remaining disciplined through the process. These are fundamentals we will always stick to.
If you have any questions about that please give us a call (02) 9905 9001. We love to talk about this and that is what we are here to do day in day out.
This week we ran a webinar focused on retirement, which the point of it was to help people understand how much money they will need in retirement, how long their money will last and use some simulated graphs to do that. We find that it is really helpful and clients always find the visualization very helpful as well. If this is something you would like us to go through with you, please let us know, because these graphs are a really useful tool to help map out retirement incomes.
Lastly, we have a book launch in the city on the 01/04/21 – hosted by Federal Senator Andrew Bragg who is launching our new book “The Super Secret”.
There is a lot we went through here and a lot to talk about, so please give us a call or email aimie@archcapital.com.au to book a time to ask any and all questions you have.
Hope you enjoyed our Arch Capital update!
Nigel

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