Don't bury your head in the sand

By Stephen Lansdown | 06 Aug, 2008 

It is tough in investment markets at the moment and the likelihood is that it will be tough for some time to come. The point I think we should remember is that just as when times are good and it is impossible to see that they are going to end, it is equally as difficult to see where the possible turn for the better will occur when times are rough. Experience tells us however that just as markets do not go up forever they do not fall forever either.

When uncertainty exists as it does now the shares of good companies fall just as much if not more than the bad ones. In other words the baby gets thrown out with the bath water. This does present an opportunity for all of us to review our portfolios allowing the opportunity to sell those investments which are generally poor performers and replace them with better performing funds which when the markets do turn should perform better.

There is also the question of those insurance funds we may hold. Certainly the market movements in recent times will reduce the likelihood of a chargeable event if you cash them in so this may be just the opportunity you have been looking for to move your funds into better performing unit trusts.

This is not a time to bury your head in the sand but perhaps one to be very proactive in revamping your portfolio.