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All Ordinaries Index

Special Market Update – 14th January 2009

John Hewison
Founder and Director
14 Jan 2009

The following is an edited transcript of John Hewison’s opening address at the November 2008 staff retreat.

We are all going through a tough time and much of our discussion at this retreat will be focussed on the current conditions and how we respond. Our company has endured many times of adversity throughout its history and it is worth revisiting those events.

The company was established in financial planning in 1985 and opened its StKilda Road offices in early 1987.

Janine joined the firm in March 1987, then in October of that year the sky fell in. The 1987 stock market crash when the All Ordinaries Index fell 40% in one day.

This was a catastrophe, as Australians were generally new to share market investment. They saw their life savings literally halved overnight. It was awful; our telephones rang all day and clients were shattered. We invested in Managed funds in those days and we were powerless to do anything.

As we encouraged our clients to remain calm, it became obvious that droves of people were pulling their money out of managed funds and some iconic names in the industry like Clayton Robard, Equitilink and Security Pacific literally disappeared. As investors sold out, fund managers lost control as they were forced to sell assets in a depressed market and the only assets they could sell were the good ones, leaving a seriously downgraded portfolio with little chance of recovery

Download article Hewison Private Wealth is a Melbourne based independent financial planning firm. Our financial advisers are highly qualified wealth managers and specialise in self managed super funds (SMSF), financial planning, retirement planning advice and investment portfolio management. If you would like to speak to a financial adviser on how you can secure your financial future please contact us 03 8548 4800, email [email protected] or visit www.hewison.com.auPlease note: The advice provided above is general information only and individuals should seek specialised advice from a qualified financial advisor. The views in this blog are those of the individual and may not represent the general opinion of the firm. Please contact Hewison Private Wealth for more information.