Brexit.  South China Sea.  US Election.  Syria.  N Korea.  Shale oil.  Brazilian politics.  Putin.  Refugees.

These are among many issues that are plaguing our media pages and making it difficult to find some direction when it comes to investing your superannuation or non-super monies.

Yet are these really that important in the long run?

There are Strategic moves and Tactical moves.   One is short term for those who have the ability and inclination to make them and there is the long term plan that is adhered to come what may.  Does one do better than the other?  Depends on the time frame and assumes identical asset allocation overall.  As the latter does not happen due to moves at the Tactical level, we cannot really compare risk adjusted returns.  Absolute returns will vary and may well be better under a Tactical plan….if only we knew some outcomes in advance!

The Brexit vote is one that is looming and is sure to cause a stir either way.   If they leave, then more fees come into play for financial settlements and there is a possibility of being barred or priced out of the EU markets.  Then there is the cost saving of being out of the intensely bureaucratic EU parliament and the time delays in getting any decision finalised.   At least the government of hte day in the UK can make its own decision without recourse to EU or the threat of being over-ruled.  It also leaves more markets open to negotiation which are not there today.  To stay means that the economic bloc is maintained and perhaps even strengthened by the vote of confidence.   Other countries who might otherwise have a plebiscite on the Leave/Stay issue may call it off.   Then there are the deals that Cameron has tugged out of the EU which in theory protects the UK a little better.

Immigration is an issue as Germany and others have found out – the illegal type.  Britain doesnt have the open boarders of many EU countries and so when the illegals come in, they tend to destroy all ID and therefore cannot be deported if caught…no ID means nowhere to deport to!  That is an emotive issue being used by the UKIP and others for reasons to exit the EU.

So for investors, we will see increased volatility (becoming a euphemism for falling share markets) and there lies an opportunity for the Tactical thinkers and enacters.   is that you?

The other issues above are also areas for tactical moves – more on these as I find meaningful commentary.

Wishing you well and feel free to call/contact me to discuss your financial needs – I am here to help.