Quote of the Month – Curb Your Optimism

Stuart Podmore (Schroders) –

“Markets have been volatile in recent years, but overall returns have been unusually strong. Because the outcome has been good, in that investors’ portfolios have risen in value, it’s only human to make the assumption – incorrectly as it happens – that all your personal decisions have been good, too.

“You start to feel that it’s your judgment calls which have worked out so well, rather than external factors which you can’t control. This in turn encourages people to feel more confident both about their own knowledge and to believe they will outperform others in the future.

“But the past 18 months have taught us that the future is difficult to predict. A measured approach to investing based on long-term objectives is likely to stand investors in better stead.”