The European Debt Crisis - Who is Walking the Dog?

The 750-billion-euro crisis fund released on Monday saw markets soaring across the world. Wall Street was gripped by a fresh panic as fears spread that the Greek debt crisis will trigger a new catastrophe for the fragile global banking system. The chaos was compounded as one major bank was said to have made a big trading "error" by trying to sell a huge number of shares by mistake.

Adrian Clayton of Alphen Asset Management notes that the European debt crisis has been flogged to death, but it is so topical and its origins based on such a bizarre vision that it is well worth another look. To read more please click on the following:

The European debt crisis: What went wrong?

What does this mean to our clients?

Silke Financial Service's investment approach is long-term in nature and it is important that you understand it, buy into it and remain disciplined in spite of short term fluctuations. Although there may be times when it is appropriate for you to disinvest or switch funds, this would only be dependant on your personal circumstances changing! When considering your investment plan holistically, make certain that you don't lose focus on your initial objectives and how you want to grow and/or protect your wealth. By providing expertise and reassurance through ongoing education we will ensure that you remain focused on your objectives, especially during times of market volatility. Mathematically known as the "Random Walk With Mean Reversion Theory"

A simple analogy can be made: The random walk process is like an old lady walking her German Shepherd "Rusty" home on a long lead. The speed and direction are known. Although Rusty will walk along in a random fashion, the size of his lurch is bound by the length of the leash and the direction of his owner's stride. When Rusty moves away from the old lady, he will eventually be pulled back, and in due course will follow the path leading home.

Silke Financial Services are skilled risk and investment strategy consultants that provide a unique service offering not available elsewhere in the marketplace.