wetalkmoney.com.au

I wish I had a dollar for every time I’ve been asked:

“Tony, how can I get high levels of income and growth without taking much risk?”

Let’s start with a reality check – you can’t!!

Learn more

https://www.wetalkmoney.com.au/blog/the-bucket-strategy

Burl Welcome Page Burl Welcome Page

My 9 Tips for Investing in Turbulent Times

Tip 9 - IT'S CYCLICAL

The higher returns shares generate over time relative to cash and bonds is compensation for periodic short-term setbacks. Recognise that these setbacks are part of the cycle. Don’t get thrown off the higher returns that shares and other growth assets provide over the longer-term. Cycles are a fact of life and, while they don't repeat precisely, they rhyme.

https://www.wetalkmoney.com.au/blog/9-tips-for-investing-in-turbulent-times

My 9 Tips for Investing in Turbulent Times

Tip 8 - LOOK LESS

Day by day it’s pretty much 50/50 if share markets end up or down. On a monthly basis, they finish up two thirds of the time. On a calendar year basis, using data back to 1900, this increases to 80 per cent. The less you look at your investments, the less you will be disappointed, and the less likely you’ll sell at the wrong time.

https://www.wetalkmoney.com.au/blog/9-tips-for-investing-in-turbulent-times

My 9 Tips for Investing in Turbulent Times

Tip 7 - THE WALL OF WORRY

It seems there’s plenty for investors to worry about at the moment. While this is real and creates uncertainty, in a long-term context its mostly noise. The global and Australian economies have had plenty of worries over the past century, but they got over them. Australian shares have returned 11.8 per cent per annum since 1900. Turn down the noise around the short-term movements in investment markets.

Learn more here: https://www.wetalkmoney.com.au/blog/9-tips-for-investing-in-turbulent-times

My 9 Tips for Investing in Turbulent Times

Tip 6 - REMOVE THE EMOTION

Emotion plays a huge roll in amplifying the investment cycle, both up and down. Avoid assets where the crowd is euphoric and convinced it’s a sure thing. Favour assets where the crowd is depressed, and the asset is under-loved. Don’t get sucked into the emotional roller coaster.

Learn more: https://www.wetalkmoney.com.au/blog/9-tips-for-investing-in-turbulent-times

My 9 Tips for Investing in Turbulent Times

Tip 4 - TIME-IN, NOT TIMING

In times of uncertainty its temping to try to time the market. But without a proven asset allocation or share picking process, it’s next to impossible. Market timing is great if you can get it right, but without a process, the risk of getting it wrong is very high and can destroy your longer-term returns. Selling after big share market falls can feel comfortable given all the noise is negative but it locks in a loss and makes it much harder to recover from.

Learn more: https://www.wetalkmoney.com.au/blog/9-tips-for-investing-in-turbulent-times

My 9 Tips for Investing in Turbulent Times

Tip 3 - UNDERSTAND RISK AND RETURN

Put simply: the higher the risk of an asset, the higher the return you should expect to achieve over the long-term, and vice versa. There is no free lunch, and you should always allow for the risk and return characteristics of each asset in which you invest. If you don’t mind short-term risk, you can take advantage of the higher-returns growth assets offer over long periods.

Learn more here: https://www.wetalkmoney.com.au/blog/9-tips-for-investing-in-turbulent-times

My 9 Tips for Investing in Turbulent Times

Tip 2 - DIVERSIFY

The best performing asset class each year can vary dramatically – last year’s top performer is no guide to the year ahead. Have a combination of asset classes in your portfolio. This particularly applies to assets that have low correlation, i.e., that don't just move in lock step with each other. A well-diversified portfolio is less volatile.

YOUR SECRET WEAPON

As investors, we don’t have to look too far to find bad news right now. Inflation is at its highest levels in decades, central banks are lifting interest rates, war is raging in Europe and recession fears are growing. And all this is on top of the worst pandemic in a century. Amid all this, you want us to look on the bright side?

OK, the stress we feel is real enough, but there is a better way to invest that is not contingent on the news of the day. This starts with focusing on how we invest and prepares us for times like now. Markets price news instantly and there is little to be gained from second-guessing them. But discipline is something we can control.