The Great January Sale

January is the month that starts off each year and is, as we know, a time for new resolutions, habits, goals and ambitions. In fact, the name January is derived from the Roman god, Janus, who is the god of beginnings, gates, transitions, time, duality, doorways and so on.

Modern day January is also commonly known for its mass sales across the world’s various retail industries, and a time to ship the previous year’s products at a discounted price. Apart from giving you dread for the same thing you bought your Nan at Christmas now being 20% less, it is also a good opportunity to snatch a bargain.

Now that we are in January all the emails from Ted Baker, All Saints, Oliver Sweeney et al have started streaming through to my inbox but what Great January Sale am I not hearing about, receiving via email or being urged to spend my hard-earned dough on?

Well, that is the fact that 2018, particularly from October onward, resulted in Global Stock Markets experiencing temporary declines that we haven’t seen for quite a few years. Basically what happened is that equity markets dropped and the price of pretty much everything is significantly lower than it was at the start of the year. As a well behaved investor we know this decline will only be temporary and that we will, in time, be much further ahead once again, as has been proven time and time again in the past. More about our investing philosophy can be found here.

Here are the figures using some basic market indices that you may know, from 2nd January 2018 to 31st December 2018:

  • FTSE100 - down 8.73%
  • S&P500 - down 4.38%
  • MSCI World Index - down 6.86%

 

So hang on, I could today invest £1,000 into the MSCI World Index - which is basically a tracker for all the major companies in the world - and I would get a 6.86% discount from this time last year? Yes, that is correct. Sounds good to me.

If you look at the same index from 1st October 2018 (when markets really started to take a temporary decline) to 31st December 2018, you get the following:

  • FTSE100 - down 9.47%
  • S&P500 - down 13.83%
  • MSCI World Index - down 13.83%

 

Yes, that same opportunity to invest in the worlds most glorious companies, is at a discount of 13.83% since October? Wow.

The media would make you think that it is all doom and gloom when markets take a temporary dip, but the reality is that it is prime time to start, continue or even enhance your regular investing. The global stock market is currently in a January sale and it is by far the best value one out there. I promise you that in 30 years time, a savvy, consistent and well behaved investor, will look back at this moment as a significant one as they look at the wealth they have created through regular investing in the fine companies of this wonderful world in which we live.

You’ll appreciate it much more than a coffee machine from Curry’s that's 50% off or a discounted (but still overpriced) hoody from All Saints. Go enjoy the real Great January Sale.

Caveat… this is not advice on where to invest (you need an adviser for that), there many more components to investing and this is just a guidance on some of the behaviours you should be adopting and the mindset you should employ. If you do want advice, then please drop me a line and we can start your journey of wealth creation together.

 

Alfie Mullan, January 2019

Want to hold a conversation that will quite literally change your life? Well drop me an email and we can get this new life on the road.