Hello and welcome to this month's edition of Investment Insights, where events of the past week have again demonstrated the importance of focusing on the long term, making decisions on things that you can control, and ignoring the noise all around you.
We start off in Cyprus, where news that their banking system was on the verge of a collapse sent markets down slightly, and provided the press with ample fodder to write about the next crisis that was going to doom us all. In this article from The Economist, Charlemagne notes that Cyprus is the fourth euro-zone country to receive a full bail-out after Greece, Ireland and Portugal (or the fifth, if one counts the partial bail-out for Spain's banks). When the dust settled on all of these previous bail outs, the world kept turning and despite the predictions the stock markets produced double digit returns.
Speaking of returns and moving across Europe from Cyprus to Norway, Abnormal Returns writes that there is more investment lessons to learn from how Norway manages its oil wealth than trying to make decisions based on the latest news and rumours coming out of the Mediterranean. They note that Diversification, Rebalancing and Costs are what investors should be looking at when making investment decisions, long a key tenant of how we advise clients on their investments.
Finally Daniel Minihan, our Director of Wealth Management, wrote last week about focusing on the things that are important. So after you ignore the latest news on this week's 'Crisis', take a lesson from Norway on how to invest your money, make sure that you are focused on the things that are both important and you can control.
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