Hi there,
As we settle into winter 2025, it’s a good time to touch base with our quarterly update. Here at Arrowroad Financial Planning, we’ve been busy helping clients meet their 30 June deadlines and welcoming new faces to the Arrowroad family. We’re always grateful for your trust and support, so if you have any family or friends you think could benefit from our guidance, please don’t hesitate to refer them our way.
The Ups and Downs of May: A Lesson in Long-Term Investing
You might have noticed that after a bit of a dip, markets rebounded nicely in May. This kind of movement, while sometimes a bit unsettling to watch, actually offers a great opportunity to remind ourselves about the benefits of staying invested for the long haul.
It’s easy to get caught up in the daily headlines – global politics, tariff talks, you name it. When markets get a bit choppy, the natural reaction for some might be to pull back their investments, hoping to avoid further drops. However, as we saw in May, those who reacted impulsively by reducing their exposure might now be regretting that decision as markets climbed back up.
This is exactly why we emphasize the importance of sticking to your plan. For our clients, particularly those with a balanced risk profile, your strategy is built to weather these short-term fluctuations. We aim for long-term growth, and that means riding out the occasional bumps. We’re really pleased that our clients held firm, staying focused on their long-term financial goals and avoiding the “noise” and chatter that can lead to rash decisions.
A Glimpse from Afar: Hong Kong, Seoul, and the Power of Perspective
I’m writing this post from Hong Kong, on the last day of a recent short visit here and to Seoul. It’s been a truly wonderful opportunity for Wei, our Head of Product and Research at Arrowroad, to participate in conferences in both cities. I was fortunate to be here in support and have continued to work with clients remotely – it’s truly a great time we live in, with technology enabling us to stay connected no matter where we are.
While in South Korea, I had the chance for a day trip to the DMZ, which included a deeply moving talk by a recent defector from North Korea. It was an inspiring and emotional story that really brought home how privileged most of us are to have enjoyed freedoms for the majority of our lives. Even the challenges of COVID lockdowns felt like minor inconveniences compared to the hardship these brave people have endured. The Korean people are truly amazing, and I sincerely hope a better path forward can be found for their relationship, which I understand is quite strained right now. For now, it’s comforting to know that South Korea offers refuge for those courageous enough to risk their lives, and the lives of the families they leave behind.
Hong Kong, on the other hand, offered a different, yet equally striking, example of humanity. Just walking through Hong Kong Central station at peak hour is an incredible experience – seeing thousands of people work together with minimal conflict, moving seamlessly every day of the week. It’s also, however, a stark reminder of the wide divide between rich and poor, with monthly rental leases reportedly soaring well above $1 million for some properties.
These experiences have been incredibly inspiring, and I’m looking forward to getting back to Melbourne feeling refreshed and ready to serve you in even more ways!
Your Financial Well-being: Beyond the Headlines
At Arrowroad, our focus is always on your financial well-being. We understand that not everyone wants to pore over market charts every day, and that’s perfectly fine! A key part of our job is to monitor these things for you, so you can focus on enjoying life. However, we also believe in keeping you informed and empowered, especially for those who are newer to watching market movements.
We’ve gathered a few articles to keep you informed and perhaps inspired this winter. You can find them here:
We hope you find them insightful.
Stay warm, stay curious, and enjoy the season ahead!
Best regards,
Arrowroad | Mark Opie
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