April does have more showers than other months, regardless of where you are in the country. During the month of April, a band of strong winds, known as the jet stream, moves northwards. This changes the air pressure and leads to an explosion of cumulus clouds — the type of clouds that create rain showers. It is very difficult to predict exactly where and when showers will occur, and how long they will last – should you take your umbrella or your sun hat!

It's a similar story with investment markets. We know with near certainty that they will rise and fall, sometimes rapidly, occasionally by a sizable percentage, but that over the long term they are likely to rise. What we don’t know, like April showers, is exactly when the individual rises and falls will occur, by how much, or how long they will each last.

The weather cannot be controlled much like the markets but by focusing on the factors you can control, long term results can be achievable. Focus on what you can control. Pack your umbrella and your sun hat and if you follow these four main principles you’ll be prepared for all weathers…

Goals
Create clear, appropriate investment goals. The investment process begins by setting measurable and attainable investment goals and developing plans for reaching those goals.

Balance
Develop a suitable asset allocation using broadly diversified funds. A successful investment strategy starts with an asset allocation suitable for its objective. Investors should establish an asset allocation using reasonable expectations for risk and potential returns. The use of diversified investments helps to limit exposure to unnecessary risks.

Cost
Minimise cost.
You can’t control the markets, but you can control how much you pay to invest. Every pound that you pay in costs and charges comes directly out of your potential return.
Indeed, research suggests that lower-cost investments have tended to outperform higher-cost alternatives.

Discipline
Maintain perspective and long-term discipline.
Investing evokes emotion that can disrupt the plans of even the most sophisticated investors. Some make rash decisions based on market volatility. But you can counter emotions with discipline and a long-term perspective. This can help you stick to your plan.

Investing is a dynamic process and a lifelong journey. If you stick with these principles, stay disciplined, control what you can control and keep a long-term view, you will be able to focus on what really matters and enjoy life come rain or shine.

April 2023