Volatility Means Opportunity
We are in for a bumpy ride in investment markets. These are the times when experienced investors make money while others lose. Being able to understand volatility and how to use it as an opportunity is a key skill that will bring financial rewards. It comes from being a confident investor who is prepared […]
Dealing with Market Ups and Downs
Investors in shares or diversified funds such as KiwiSaver are on a rollercoaster ride. The best strategy for dealing with volatility depends on your financial goals and whether you are still building your wealth or using it to fund your retirement. For wealth accumulators, market volatility is more of an opportunity than a threat. Regular […]
Turn Volatility into Opportunity
KiwiSavers and investors are bemoaning the fall in value of their investments. Over the last few months, investment returns for balanced and growth portfolios have been negative, causing many to rethink their feelings about risk and return. It’s all very well to be an aggressive, risk-taking investor when share markets are rising, but the true […]
Investment Strategy for KiwiSavers
Volatility is a new experience for KiwiSaver investors who have known nothing but stable markets in recent years. There will be plenty of opportunity over the next two or three years for nervous investors to make bad choices about how their funds are invested. There are two key principles for managing volatility. The first principle […]
Keep Calm and Carry On Investing
More uncertainty in investment markets means more volatility and a need to review your investment strategy. It’s easy to invest when markets are rising, but when they fall your tolerance for risk can be pushed to the limit. Start with the basics. Focus on your goals and objectives. If you have long term investment goals, remind […]
Planning for a Market Crash
For a while now, there has been talk of a possible share market crash. Since the 2008 Global Financial Crisis, share markets have shown a strong upward trend, and we have forgotten what it’s like when returns are negative. In the long term, share prices are driven by fundamental, objective measures such as company profitability […]
Why Retirees Needn’t Be Conservative Investors
Conventional wisdom says that once you are retired you shouldn’t take risks with your money. That’s good advice, however it doesn’t mean you need to be a ‘conservative’ investor. It simply means that if you invest in assets such as shares and property which have a high return but high volatility, you need strategies for […]
Why Investors Shouldn’t Read Headlines
Why Investors Shouldn’t Read Headlines There is nothing like a sudden drop in the share market to send investors into a panic. It is easy at the time of investing to be full of confidence and classify yourself as someone willing to take risk in exchange for the potential of a higher return. However, when […]
The Impact of Fear
The Impact of Fear The impact of the turmoil in Greece on share markets is a classic example of how the emotions of fear and greed create volatility. When shares start to drop in value, investors can become fearful of sustaining further losses. This leads to panic selling which further fuels the fear. Eventually a […]
