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Hello volatility, welcome back. It’s been a while.
As share market investors, we should appreciate that we’ve had it pretty good for well over a decade. It’s hard to understate how smoothly world equity markets have climbed since things settled down after the 2007-09 Global Financial Crisis. 18/11/2022 A man, his dog and the sharemarketI 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.
Investment markets have been as volatile as I can remember in a long time.
This is all part and parcel of the share market investment experience. If you open the door for better returns, expect some shenanigans along the way. Markets will recover. As long as you have time on your side, there’ll be no real damage done. But what if you are retired. Retirement ought to be the time of your life. And for many retirees that holds true.
Some would say that they were happily retired, while others wouldn’t even admit to being retired at all! That’s the point – this next phase of your life will be about living the kind of life that YOU decide. Investment mistakes cost you money – that’s why they must be avoided.
What I’ve discovered over the years is there are only two ways to gaining the experience necessary to know how to avoid investment mistakes.
Frankly, I'm no glutton for punishment. The easy way makes sense to me. Avoid these mistakes, do better with your money and accelerate your journey to retirement happiness. 15/11/2019 Average Is A Mirage.
Ask a farmer about average rainfall and he’s likely to react sceptically. Knowing how actual rainfall varies from year to year, farmers carefully manage their crops and irrigation. It’s a lesson many investors could learn as well, with published ‘average’ returns masking a wide range of possible outcomes.
23/8/2019 Timing Isn't EverythingThe lure of trying to time the market may tempt even long-term investors. But outguessing markets isn’t as straightforward as it sounds.
21/1/2019 Investment StructuresOnce a decision has been made to buy an investment, it is important to consider the best investment structure to use. An investment structure refers to the way investments are legally owned. Many people simply purchase assets in their own name or joint names, when other ownership structures may be more suitable.
Market volatility can create anxious moments for even the most disciplined of long-term investors. But people who make it through to their goals are usually the ones who can separate the feeling itself from the urge to act upon it.
Understanding how markets work can make it easier to deal with volatile periods. Here is a layman’s explanation. If we acted logically, would we ever eat food that’s not good for us? No. Would we ever skip our exercise? No. Would we drink and drive? No. None of these are logical, but it still doesn't stop us.
Emotion gets involved. |
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19/11/2022