Advisers fail basics
Advisers and investors are still chasing returns and failing to grasp investment basics, according to Frank Russell director of portfolio research Ernie Ankrim.
Ankrim has been attempting to get investors to forget the huge returns which have dictated the market for the last few years and to remember the basic fundamentals of investing.
Ankrim says the phenomenon is most apparent in the push for further technology investment to generate solid returns.
"When looking at things people believe to be long lasting the truth is much of it is based on only three or four years of results," Ankrim says.
"The result in this time period is that technology was second to consumer durables such as washing powder and tooth paste."
Technology only ranked in the number one position once in five years and over 15 years showed a much weaker position.
Ankrim says investors and advisers naturally give more weight to recent events and influence over decisions and take that same approach forward.
AUTHOR
Jason Spits
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