Have your investment and pension funds fallen either recently or in the past? David Woodward wealth manager and managing director of Woodward Financials wealth management explains the root cause.
Being recently voted the Best Independent Wealth Management firm of 2021 has shown that we fully understand what moves the investments markets and can react quickly to preserving capital. But for those that aren’t clients of Woodward Financials you may have experienced an unsettling journey of worry and uncertainty when the markets took a drop.
If only you had a crystal ball, you could go into cash, right? Well Woodward Financials have a unique weapon in their wealth management arsenal, an algorithm which identifies market movements, especially a move to the downside, resulting in client portfolios being adjusted some days before the market drops and thus preserving capital.
So, what happened in the following weeks? After the algorithm triggered, nothing short of horrifying. The leading funds looked after by the so-called best fund managers in the industry fell nearly 4 times as much as the associated markets, how many investors got burnt even though they had a Wealth Management consultant.
How can that be, these fund managers getting six and seven figures to manage funds worth billions, they have a team of analysts, but still suffered catastrophic losses, were they over exposed, slow to react, locked in losses at a lower price?
We then embarked on some research to use to our future advantage to learn how our algorithm was ahead of the markets and how did the leading fund managers stack up, as well as comparing their performance with the market associated with their investment fund.
What we discovered is that many fund managers have an inept ability to manager an investment fund in a bear market, after all we spotted it and reacted, why didn’t they.
So if it happened again which it will, would you reduced your exposure to US funds by 50% if the Dow was going to fall and allocate this to another fund such as a UK fund, Woodward Financials wealth management approach would be “no, because you can’t trust a fund manager to perform in a negative market, some funds do go up but what if its a systemic market when everything falls, our algorithm is our crystal ball and we intend to use it as such”
Historically they say you should not go into cash unless you have a crystal ball, but if you did have that orb of glass and could use it to support your investment decisions, that must be something all wealth management companies should take note of, unfortunately ours isn’t for sale.
Our opinion now is that if you know the market are going to fall, why watch it fall? If you know that the markets are going to fall, why leave it with fund managers that are inept at preserving capital in a negative market, look for a wealth management service that is really looking to break the mould.
Moving out of a fund takes time, then to move into another short-term fund takes time only when the dust settles do you then move towards a growth approach, all this takes time, by sitting in cash for a short period you can re-enter when the dust settles quickly, save on fund managers fees and benefit from the upswing.
You could of course use a dinosaur wealth management firm, watch it go up and then down and then back up for a mediocre return, or you could use the best wealth management firm with leading technology to help you reach you financial goals. So if you have searched for a wealth management firm near me, look no further.