News, views and more

We have had a number of clients ask us about our thoughts on the current investment markets and how our investment style (Goals Based Investing or GBI) will perform over the next one to two years.

Market update and insights

As a starting point, we've attached a link to a recent update by Dr Jerome Lander, Portfolio Manager of Dynamic Asset Consulting, who provides his view on current asset class valuations and where they are heading.

As stated in the video, current asset prices are high, and the risk of a severe market crash is increasing. The need for an actively managed, dynamic investment portfolio is paramount to move away from increasingly risky traditional asset classes such as equities, property and fixed income, which are dependent on a stable economy for growth and into alternative assets and strategies. This investment strategy is called Goals Based Investing and it better aligns with clients' objectives while also protecting their capital.

The benefits of Goals Based Investing

There are specific attributes that you can expect from Goals Based Investing:

• You should expect a higher probability of achieving your targeted investment outcome - which helps provide peace of mind.
• You should expect less volatility and a greater degree of capital protection.

Combining these factors, simply put, you should expect a Goals Based Investment with lower volatility would under-perform during a rising market and that it will out-perform during a falling market.

It’s important to understand that just because you target an outcome, doesn’t mean it is guaranteed. All investments involve risk regardless of how you do it and you can still experience volatility of your capital. Your investments will still go up – and down. It is also important to note that if markets continue to increase significantly then this GBI approach will more than likely, under-perform. 

Goals Based Investment philosophy

WLM’s investment philosophy has always been not to lose clients money. Therefore we do not chase rising markets just to keep up with our peers. And on the flip-side, we do not see significant losses.

In summary, proper diversification and active asset management through Goals Based Investing can mitigate the typical risks stemming from falling markets. 

To find out how you can protect your investments from potential losses and meet your investment goals, please contact us. Or discover more about WLM Financial's expertise in financial planning.