A key to a successful investment experience is understanding how markets behave and developing the discipline to avoid rash decisions based on short time periods.
We'd all love for the market to go on a tear forever, reaching record highs and blowing minds; but the truth is, downturns are a reality, particularly if you are a long-term investor.
One old adage about investment is that you buy a bunch of reliable stocks, stick them in your bottom drawer and forget about them. That ignores one pesky fact: nothing stays the same.
Depending on luck is simply not a sustainable investment strategy. Evidence-based, goal-based investment may not sound as exciting but is also a lot less work.
Volatility is back. Just as many people were starting to think markets only ever move in one direction, the pendulum has swung back the other way. Anxiety is a completely natural response to these events. Acting on those emotions, though, can end up doing us more harm than good.
When KiwiSaver was established on July 1, 2007, the scepticism it had faced turned out to be unfounded. In a little over a year, more than one million people had signed up.
Just as winemakers don't have any say over the weather, investment managers can't control the markets. Savouring a vintage wine is one of life's great pleasures. But often overlooked in the joy of consumption is the carefully calibrated journey from grape to glass. Similar levels of care are critical to good investment outcomes.
The global fashion industry is fickle by nature, pushing and then pulling trends to keep hapless consumers forever turning over their wardrobes. Some people in the financial services industry work the same way.
According to a global sustainable investment group that covers Australia, New Zealand and other developed nations, assets managed under "responsible investment" strategies increased by 25 per cent between 2014-16 to US$22.89 trillion.
When you haven't got much capital of your own, the road to financial security can seem long, hard and complex. But the truth is that wealth building is relatively simple. All it takes is time and the price of a cup of coffee.
Most of us have multiple roles — as business owners, professionals, workers, consumers, citizens, students, parents, and investors. So, our views of the world can differ according to whatever hat we're wearing at any one time.
Like farmers planning a harvest, investors pinning their expectations on statements about arithmetical "average" investment returns can be disappointed. As with rainfall, market returns are rarely evenly distributed either across time or place.
Bitcoin and other cryptocurrencies are receiving intense media coverage, prompting many investors to wonder whether these new types of electronic money deserve a place in their portfolios.What are investors to make of all this media attention? What place, if any, should bitcoin play in a diversified portfolio?
Wine investment has barely been on the scene for two decades, and If you have a taste for investing in wine, it could be a hobby worth the money one can spare.
Early in February after a long period of relative calm, the world found out that markets do contain a level of volatility they move up and DOWN and sometimes they can move quite quickly. What does this all mean to your average KiwiSaver investor… not much.
We are sometimes asked about dollar cost averaging when investing client funds and whether this is a good idea. It is certainly something which should be considered, particularly for first time investors, and those whom are introducing a substantial lump sum deposit into their investment portfolio.
Bill Gates wisely pointed out that "most people overestimate what they can do in one year and underestimate what they can do in 10 years".
This promises to be the year we see the culmination of some key technologies — from blockchain and artificial intelligence (AI), to design thinking and the cloud.
The financial media is drawn to catchphrases, acronyms, and buzzwords that can be sold as the new thing. FAANG (Facebook, Apple, Amazon, Netflix, and Google) is the latest of these. But does this constitute an investment strategy?
We have all read about the financial plight of millennials, who are not only drowning in student loan debt but other loans and expenses as well. They include car payments, rents or mortgages, and credit card bills.