George Square Financial Management - Monthly Market Commentary

The lessons of history and a tantalising glimpse of recovery

Today, being a stock market investor is like being the skipper of a ship. You are below deck, the hatches are battened down and the wind and rain are battering your boat. Yet through a crack to the side of a porthole, you can see in the distance a ray of sunlight breaking through the black storm clouds. The most experienced sailors may even be able to detect a pattern in the ripples of the distant sea and see calmer waters emerging.

To be optimistic at times like this is challenging, but it is also one of the vital skills of investment. History teaches us that each and every year, you are faced with an avalanche of negative news. This news can of course lead to sharp falls in stock markets, and yet somehow through it all, eventually the relentless march upwards for shares is resumed. It is almost always possible to identify a perfectly good reason why markets will fall. Imagine picking a year at random from the last twenty.

You can download and read the full article here GS October Commentary Chamber of Commerce.pdf