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On behalf of all our team at EWL Private Wealth, I would like to personally thank you for your continued trust in 2022. We understand that trust is earned, not given, and can be stretched in negative years like the one we have just had. While these years are inevitable, they can be very uncomforting. There is nothing more important to a successful relationship than trust – in our people, in our investment philosophy, our process, and your confidence that we will always put your needs first.
When we design a portfolio, or strategy for each family – it anticipates volatility. The reality that we will face positive and negative years together. On average, there will be a negative year every 4-6 years of between 15-30%. Irrespective of these levels of volatility, share markets have still returned, on average, a positive 9.50-11.60% per annum over the past 30-years. Those 30-years have encompassed booms and busts, global conflict, global financial crises, various geopolitical environments, recessions, and expansions. What’s important is that for those who need to draw upon their portfolio, they have liquid assets that can fund these withdrawals without having to sell more volatile ‘growth’ assets at a loss. These buffers are there to weather volatility and uncertainty.
Even more important is that investors trust their plan and stick to their strategy. Most of the families we work with have owned or operated a business. When something is underperforming in their business, they take action to improve the outcomes. It’s not surprising that when portfolios have a down year, investors want to act. To ‘sell out before the portfolio falls further,’ to ‘time the top’ and then to ‘reinvest when the market is recovering.’ The truth is, navigating short-term market fluctuations is near impossible. While it’s human instinct to want to react, good companies, with good leadership are doing exactly that. Making decisions on whether to cut or increase staff, managing their inventories, level of R&D spend, CapEx, OpEx. For businesses in an excellent financial position, deciding on whether to be opportunistic – acquiring businesses that sit within its supply-chain or buying back shares. Staying invested in quality businesses is what an investor does. Trading, timing for predicting short-term events is speculating, not investing.

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As mentioned above, the ‘average’ historical return for the S&P500 is about 8-10% per annum. Despite this average, the S&P500 has only gone up by 5.00-10.00% six out of the last ninety-four years. Returns, both positive and negative more commonly tend to over or undershoot this average significantly. Returns of positive 10-30% occur 42% of the time. Returns of 0.00% to -20% occur about 26.00% of the time. Across the dataset, returns are positive two-thirds of the time.

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‍
On behalf of all our team at EWL Private Wealth, I would like to personally thank you for your continued trust in 2022. We understand that trust is earned, not given, and can be stretched in negative years like the one we have just had. While these years are inevitable, they can be very uncomforting. There is nothing more important to a successful relationship than trust – in our people, in our investment philosophy, our process, and your confidence that we will always put your needs first.
When we design a portfolio, or strategy for each family – it anticipates volatility. The reality that we will face positive and negative years together. On average, there will be a negative year every 4-6 years of between 15-30%. Irrespective of these levels of volatility, share markets have still returned, on average, a positive 9.50-11.60% per annum over the past 30-years. Those 30-years have encompassed booms and busts, global conflict, global financial crises, various geopolitical environments, recessions, and expansions. What’s important is that for those who need to draw upon their portfolio, they have liquid assets that can fund these withdrawals without having to sell more volatile ‘growth’ assets at a loss. These buffers are there to weather volatility and uncertainty.
Even more important is that investors trust their plan and stick to their strategy. Most of the families we work with have owned or operated a business. When something is underperforming in their business, they take action to improve the outcomes. It’s not surprising that when portfolios have a down year, investors want to act. To ‘sell out before the portfolio falls further,’ to ‘time the top’ and then to ‘reinvest when the market is recovering.’ The truth is, navigating short-term market fluctuations is near impossible. While it’s human instinct to want to react, good companies, with good leadership are doing exactly that. Making decisions on whether to cut or increase staff, managing their inventories, level of R&D spend, CapEx, OpEx. For businesses in an excellent financial position, deciding on whether to be opportunistic – acquiring businesses that sit within its supply-chain or buying back shares. Staying invested in quality businesses is what an investor does. Trading, timing for predicting short-term events is speculating, not investing.


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As mentioned above, the ‘average’ historical return for the S&P500 is about 8-10% per annum. Despite this average, the S&P500 has only gone up by 5.00-10.00% six out of the last ninety-four years. Returns, both positive and negative more commonly tend to over or undershoot this average significantly. Returns of positive 10-30% occur 42% of the time. Returns of 0.00% to -20% occur about 26.00% of the time. Across the dataset, returns are positive two-thirds of the time.

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