Keeping your head with markets on the move
The Australian and international stockmarkets have made front page news lately with current global pressures, including the US sub-prime mortgage ‘crisis’.
Recent turmoil in the sharemarket should not derail an intelligent long term investment strategy
It may seem obvious, but most of us wouldn’t sell our homes if we read that property prices were falling. Indeed, we certainly wouldn’t have out house valued on a daily basis! On the other hand, people tend to panic when it comes to their shares, selling at the first sign of a downturn. So while news services report on market movements on an almost hourly basis, investors interested in wealth building, need to take a more balanced view.
It’s Also Risky Not Investing
In the short-term, selling your holdings while performance is poor, may protect your net worth, however, if the markets recover while you sit on the sidelines, your long term wealth building plans may be hampered.
Small Things Needn’t Cause Big Stress
If you’re currently investing for your retirement some 20 years away, poor performance on a daily, monthly or even yearly basis becomes less relevant to your goals. Rather than worrying about the daily ups and downs in the market, focusing on your investment strategy is a far wiser approach.
Structuring a suitable investment portfolio which meets well established goals and objectives is of utmost importance.
With our assistance, you can achieve the ideal blend of invest-ments which best suits your current and future situation.
Time is your best friend
Historically, an investment over a longer time period has a lower chance of losing money on the sharemarket. Despite this fact, sharemarket investments have a reputation for being ‘risky’.
In real terms, 17.3% of Australian sharemarket investors lost money after one year, however, over 5 and 10 year periods, all were actually better off.
Australian Sharemarket Performance
The chart below shows the continuing trend over the past 23 years.
Click image to enlarge
