The last six weeks have been something of a rollercoaster ride, and not just in the markets. Because the farrelly’s forecast methodology changes as markets go up and down, so too have the forecasts been jumping up and down. In early May, the long-term forecast for Australian equities was 6.5% per annum, by the time we went to print on 4 June it was 7.8% per annum - quite a difference in the space of three weeks. And with that sort of difference, the strategy required changes as well. Since then, the markets have been considerably lower, and as I sit in Germany writing this, they are moving up again.
Now, it goes without saying that the last thing that you want to be doing is using a strategy that flip flops from one extreme to another in the space of a few weeks.
So what do we do? Difficult or not, strategies are still required.
To assist subscribers answer that question, we've put together the attached Special Update - it will assist you in identifying strategies that may be appropriate in different market environments...