Thank you for visiting 6S Consulting. We provide sports agency advisory and management services to a limited number of sports professionals. This is so that we can maintain the ultimate service care and management to our clients; including sports science, contract advisory and management, physical well-being, career development and financial management.
Let me ask you a question. As an example as a sports professional is your agency managing your financial future?
The following message we feel is worth 5 minutes of your time; especially if its something this is one service potentially among many that you believe is not adequately or could be better covered off in your life as a sports professional.
There are essentially two options to consider in terms of investing strategy: Do you want to invest passively over time in selected securities, funds or other options, or hold funds in part or whole for a market pull-back – effectively purchasing at a discount?
Its not something you need to think about and manage on a day-to-day or weekly basis, we for example can do that for you. Along with the fact that one can do very well as a passive investor over time.
And therein is one of the secrets, over-time.
Investing is different than trading and takes some patience, through knowledge and research.
As of writing [mid 2020], the S&P 500’s recent crash [which is comprised of the U.S.’s largest 500 equities] and subsequent recovery due to Covid-19 took many investors by surprise. The index’s performance proves that it is impossible to accurately predict stock prices over a short time period.
However, outperforming the stock market over the long run continues to be an achievable goal that has allowed value investors to obtain high-returns.
As a professional sports person with a limited professional career time frame – it should be your goal to make your salary work for you for the rest of your life.
We are not your regular sports representation agency, our thinking is somewhat different and thus although our strategy is to work with a limited number of clients we are highly passionate about our clients long term growth and success, in and out of sport competition.
Our advice to sports professionals is an investment strategy that focuses on simplicity, coupled with the input of our continuous improvement and patience in investing, whether that be your pension, ISA’s or other investment accounts to generate higher long-term returns.
The past performance of the stock market shows that there are likely to be relatively few standout buying opportunities during your lifetime. For instance, there have been just 14 bear markets [significant downturns over time] in the past 70 years.
It is tempting to look around at the low returns available from fixed-income securities and fully invest in stocks. However, holding cash until highly favorable risk/reward opportunities present themselves could be a more efficient means of apportioning capital.
The world economy is continually evolving, which means that every industry is experiencing change. The pace of change continues to accelerate largely through technology than it historically has for many years requiring knowledge to include a wider range of sectors and businesses could improve your competitive advantage and thus investing returns.
Ideally you should be looking to be invested in the market over 20 to 30, 40 plus years with the power of compound interest working for you.
For example £250 per-month invested over the last 20-years at 10% annual interest would have resulted in a sum of £181,000, with £120k of that being interest.
One can multiply that monthly sum by x10 for example to demonstrate the power of compound interest (£1.2 Million)
With that in mind the reassurance is that we keep an eye on the world economy and investing landscape on a day-to-day, and weekly basis to be ready for any headwinds or opportunities that may come your way, and also keeping an eye on your portfolio.
As an example, after an 11-year bull run we determined that the U.S. equity markets in particular had enjoyed a spectacular run and that there were a few risks around that required some investor caution – these included US-China relations, US-Iranian tensions, 2020 US presidential elections, UK Brexit and a growing concern in the Far East of a coronavirus effecting China. As such we made a decision as of early January following enjoying a rise in equities (98.5% over 5-years), we switched from U.S. equities into U.K. gilts [bond] enjoying another 6% rise in 7 weeks before converting to cash in the money markets to sit tight.
Thank fully in hindsight this was a savvy strategy. We continued to buy into U.S. equities on a monthly basis with a long term horizon view, effectively buying the dip, but as of writing [late June 2020] we may be on point to sell those U.S. equities while US-China relations, 2020 US presidential elections, UK Brexit and coronavirus [Covid-19] play-out.
There is currently a lot of uncertainty around and when one couples that with what is deemed an overbought stock market; namely the S&P500 plus the consideration that the U.S. Fed is currently propping up the U.S. economy (and thus the markets) – we feel that a real risk exists when the potential of a presidential change, followed by global power plays (in whatever form) seeking opportunity, plus the eventual removal of Federal economic support (utilising even more national debt) comes home to roost – and thus when the tide goes out we will effectively see who has been swimming naked.
We therefore do not want to be found to have been, nor for any of our clients to be exposed to the reckoning that is looking more probable by the day.
I hope that this provides you at least some insight into our 360 degree thinking that we apply to every professional sports client we work with as agent.
We say 360 degree because it is about your life and well-being, not ours, and includes sports science, contract advisory and management, career development, PR & media and more.
If you do not have a sports representation agency or are thinking of changing agents, then why not get in touch and we will give you a personal call back.
Our contact information can be found on our homepage or by following the link here: Contact Us