MMP290: Navigating Volatile Markets with Matt Powell
I’ve been trading emails on and off with a listener called Matt Powell for a couple of months, and recently he sent me his own checklist for, as he puts it, ‘navigating the stormy seas of market volatility’. It is so good that I immediately emailed him back and asked him on the show to go through it with me. You’re going to really enjoy this episode.
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Navigating Volatile Markets
Matt’s investment checklist is carefully thought through after extensive listening to this show and Andy Hart’s excellent MavenMoney podcast, and through reading some great authors. In my conversation with him, Matt shares the books he has read and explains the thinking behind his checklist.
Here's the checklist, the books are listed below:
- Are diversified by geography, currency and sector
- Do not assume to have an edge (eg: index fund as opposed to a managed fund)
- Have the lowest cost management fees
- Adhere to the balance I aim for in my portfolio (equities/cash/property/fixed income)
- Are as tax efficient as possible
- Do not have liquidity risk
- Are not being changed by me or anyone else due to market sentiment, the media or short-term performance
- Are not increasing my exposure the UK economy
- Take into account that global equities are considered as the most effective *long term* asset class and that bonds are more of an emotional buffer (they reduce volatility but don’t provide returns that preserve purchasing power)
- Are not changed without having thought about it for 1 week
- Are not changed if I deviate from any one of the points above unless I have received financial advice from a trusted IFA. The IFA would need to provide compelling reasons for deviating from any point above
Resources mentioned in this episode
Course: Learn How To Invest– Don't forget the discount code of PODCAST25 when you sign up
**Sorry, no transcript this week**
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