You reap what you sow with Investments (…and Vegetables!)

This article was written by a well known Investment Manager

For those who don’t already know, I have an allotment, and this time of year is particularly rewarding because I see the fruits of my labour. My allotment is thriving today – a patchwork of vibrant colour and lush foliage. However, the real hard work was done months ago, in the cold and rain of March, when things looked very different. It’s taken patience, but the planning and preparation done then have come to fruition now. This is very much like investing.

This chart highlights another important parallel between cultivating an allotment and investing – the importance of diversification for healthy growth. The chart shows the performance of different asset classes since 2020 and the key point is that no single asset class consistently outperforms. For example, last year Asian equities (excluding Japan) were close to the bottom of the table. But this year they’ve bounced back, with strong returns. On the other hand, bonds have been unimpressive year to date, but we expect them to perform better in the second half of this year if, as anticipated, more central banks start to cut interest rates.

Remember, you reap what you sow. The key to success is to start early and diversify your investments. This proactive approach can lead to a fruitful harvest in the future.

Logic Wealth Planning provides independent financial advice in Manchester, Bury, Rochdale, Cheshire, and the surrounding area, but not limited to the region.