THE end is nigh – our IFA competitors are on the home straight. This year actually began with a certain amount of optimism, until stock markets around the world started to hit the buffers in mid January – coincidentally, the same week as this competition officially started. It cannot be denied, therefore that our competitors have been up against it ever since.
Having closed last year at 6,456, the FTSE100 found itself on 1 December 2008 at 4,288, a drop of almost 34 per cent. Investment strategies aside, it has simply been the survival of the fittest and most nimble-minded IFAs. With market swings upwards
of 5 per cent on a daily basis, it has been almost impossible to second guess just what direction the markets are heading and for how long. This is exactly why most IFAs insist that all clients should take at least a five-year view when considering any investment.
There was a point in mid-October when all four asset classes seemed to be correlated in a negative direction and asset allocation decisions seemed to have no relevance to what was happening in the real world. But hopefully that is all behind us now. I certainly feel that stock markets have bottomed-out and that the volatility that is currently being experienced is simply the early signs of a new bull market.
Our competitors have been asked to submit their end of year client report to the judges by close of business on 31 December 2008.
This information along with previous submissions will be used to determine the winner of the competition.
• Raymond Ellis is director of Scott-Moncrieff Wealth Management.
