Ep. 107 - Is the stock market a good way to invest?
Get ready for today's episode as I welcome on board Laurence Van Denwerm, an investment strategist at Timeline, a financial planning company. Hailing originally from the vibrant landscapes of South Africa, Laurence is here to spill the beans on the intricacies of financial planning, drawing from his rich reservoir of experience and expertise. The primary topic of the conversation is the role and function of a model portfolio discretionary fund manager, which Laurence explains, is to gather various ideas and information about different funds and form a portfolio to decide the best performing ones. The goal of his company, Timeline, is to help ten million people retire with confidence in the UK. They aim to achieve this through low-cost model portfolios, evidence-based investment approaches, and technology-driven planning tools. Laurence explains how Timeline uses historical market data to inform their investment strategies. He emphasizes the importance of staying invested in the market despite short-term volatility, stating that trying to time the market is often detrimental to long-term returns. He also highlights the importance of diversification in managing risk. Laurence & I discuss the implications of a high inflation and interest rate environment, using historical data and past experiences. Laurence points out that such periods have been weathered before and are not unusual in the long term. He also explains the concept of quantitative easing, emphasizing that it's a tool used to stimulate economic growth without causing inflation. Towards the end of the discussion, Laurence distinguishes between investing and speculating. He advises listeners to invest in profit-making companies and stay disciplined. He underscores that investing is a long-term endeavor, and trying to exploit short-term value often leads to poor outcomes. Finally, we touch on personal matters, discussing our pets and sharing a few light-hearted moments, adding a personal touch to the overall financial discussion. Hope you enjoy and do reach out and connect further with Laurence using the links below Laurentius van den Worm, CFA | LinkedIn Empowering Financial Advisers and Financial Planning Firms | Timeline