Hello volatility, welcome back. It’s been a while.
As share market investors, we should appreciate that we’ve had it pretty good for several years. It’s hard to understate how smoothly world equity markets have climbed since things settled down after the 2007-09 crisis.
I took our dog for a walk down to the beach last night. It’s one of those white, fluffy things – it has way too much energy and I need a very long lead. I was walking from home, through the dunes, to the beach. I’m going at a slow and steady pace, heading pretty much in a straight line, with only the occasional detour to walk around a fallen log.
The Morningstar Asset Class Gameboard has just been updated for the 2017 financial year. It’s always fascinating to look back over several years and see the winners and losers, and confirm just how tough it is to pick the best asset class in advance.
Investors at year-end are inclined to reflect on the 12 months gone and muse on what the coming year might bring. Aware of this appetite for speculation, the media tends to feed it with forecasts. These articles can be fun to read, but are even more so a year later.
It pays to teach your kids about money. In an increasingly cashless society however, it’s not always easy.
But if you don’t, somebody else might, and that’s not a risk you want to take.
With a small investment of time, everyone can provide their kids with a basic financial education that will give them a genuine head start in life.
It happens every January. The gym is filled to overflowing with people living their New Year Resolution of a healthier lifestyle. A month later? Well, you know the answer.
If your New Year's Resolution is financial, here is the Number 1 reason you need to stick to it.
The future is coming, whether you plan for it or not. Will you have the future you want, or the one that happens to you by default?"
Joe Kennedy was a wealthy Wall Street investor in 1929, and he famously said he exited the market before the crash when a shoeshine boy started giving him stock tips, as there were no more "greater fools" to join the party.
To get somewhere tomorrow, you have to know your position today.
It’s as if you are buying an airline ticket. To reach your destination, you have to know more than where you want to go. You also need to know where you are.
So this step is a really important one - benchmark what I like to call, “your current financial reality”.
Budgeting! The very mention of it makes us wince. Why? Well, I reckon it’s because budgeting confronts us with just how much money slips through our fingers - and what little we have to show for it. But that’s one of its purposes - getting a kick in the backside is sometimes good for us.
An old Darwin connection tracked me down during the week. Man, did we have some laughs. In between tall stories, (let's call him Bill) reminded me of a casual conversation we had about wealth creation nearly 20 years earlier. I can’t remember it, but in the end he went with a conflicting approach from a competitor. It went a bit like this: