The recovery from the global financial crisis has been in train for a full year now. All asset classes delivered positive returns for the year to March 2010, rewarding those investors who stayed true to their long-term investment strategies.

Investors have experienced something of a roller coaster ride since the GFC started around 18 months ago. Thankfully the past year was all about recovering lost ground – but there was a catch. To reap the rewards, you needed to stay true to your long-term investment strategy. Those who switched out of shares into cash after global sharemarkets fell in late 2008, found it difficult to know when it was ‘safe’ to go back. Many missed out on part of the recovery rally. But those who maintained their diversified portfolios, reaped the full rewards.

The beginning of 2010 again reminded us of the fickle nature of markets. It was a slightly shaky start to the year, with most sharemarkets declining in January. This was due to two main concerns on investors’ minds: uncertainty about China’s future growth and the fallout from Greece’s national debt crisis. By the end of March however, confidence was largely restored and most asset classes delivered positive returns for the quarter.

The outlook for the remainder of 2010 is uncertain and is likely to include the inevitable ups and downs associated with investment markets. So as the resolve to maintain your long-term investment strategy may well be tested again, it’s worth heeding the lessons of the recent past.

› View SuperSolution investment returns at 31 March 2010 (pdf)