Timeless investing: tools to help you stay focused on your investment strategy
Given the continued volatility in investment markets, it’s no wonder some investors develop mixed feelings about investing in shares.
When markets are volatile, emotional instincts can begin to play a role in investment decisions. In this environment, a well-anchored investor stands to benefit by persisting with an appropriate investment strategy to achieve long-term results.
We have assembled a 29-page presentation to that will help guide SMSF investors through:
What to expect from investments
Why most investors fail
Download our Timeless investing toolkit for SMSF's
Investing over longer periods improves the probability of a positive return
Share markets do have their ups and downs, but over time the market has always recovered and prices have trended upwards. Over the long-term, many investors have also benefited from good dividends along with tax credits. This highlights the importance of maintaining a long-term discipline when investing in economically-sensitive growth assets like shares.
Source: Bloomberg, ASX All Ordinaries Index. Data as of 31 December 2014.
For humans, ‘herd mentality’ is very strong, and present in everything we do. Emotions can drive an investor’s decision-making as most of us are heavily reliant on social norms and trends. It is important for investors to recognise that making an investment decision that’s driven by emotion instead of analysis can result in costly mistakes. An understanding of market cycles can help investors feel confident, even in volatile times, that their investment strategy remains on track to support the achievement of their goals.