Trustnet Magazine 77 October 2021 | Page 32

Performance of index since 1990
YOUR PORTFOLIO Bottom
“ You have to get comfortable with the fact that the tranche of money you are putting in is blind ,” he says . Should markets take another leg down , he suggests investing more cash : the idea being that you are simply taking your allocation to equities , bonds or alternatives back to its original weighting . “ If you don ’ t add risk when markets are down , it takes you longer to recover ,” he adds . Such investments have been among the most lucrative of Coombs ’ career , but they never felt comfortable .
Step into the unknown “ Lots of fund managers and private investors won ’ t make the investment because of the fear , as they want certainty and reassurance . What makes the difference between good fund managers and very good fund managers is the very good fund managers understand they sometimes have to make investments that are deeply uncomfortable ,” he explains . Returning to the original question , it is worth remembering economist John Maynard Keynes ’ quote : “ The

Performance of index since 1990

Nikkei 225 ( 16.65 %)
20 %
0 %
-20 %
-40 %
-60 %
-80 %
Jan90
Jan93
Jan96
Jan99
Jan02
Jan05
Jan08
Jan11
Jan14
Jan17
Jan20
Source : FE Analytics
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