The headlines are depressing. Potential banking crisis in Europe; US stock market slump; Greece’s economic woes. It’s little wonder investors find themselves in a mild state of shock.
When the news is all doom and gloom, where do you find a positive message to cling to? How do you stay sane when the financial world seems to have gone mad?
Then we have equity markets rally on the back of the US election. Bad global news good equity results – As Rove would say “What The?”
Those who are searching for positive news be careful, because positive confirmation is always out there, “search for simplicity in complicated times, that’s where you will find the truth” – Andy Fenton 2012
Most of us are concerned by the erratic rise and fall of our savings and superannuation investments. It’s natural to feel insecure, even a little fearful, but there are some very real reasons to be optimistic.
Firstly, Australia’s economic position is in better shape than that of many other countries. Our banks are strong and well regulated, and in recent times we’ve been reducing our levels of household debt.
The following should further bolster your optimism:
Follow your game plan. As all good sporting coaches will tell you, by sticking to the game plan you’ll ride the bumps. We create a plan for our clients at Mornington Financial designed specifically for your needs and circumstances. It’s important to know where your heading and then aim high because most people are tracking far below where they should be and the difference is the game plan.
Think long term. Most equity investments have long time horizons. By their nature they fluctuate over the short term but it’s their long-term value that matters. We work with our clients to manage this expectation over time. Markets do fluctuate over time this is true, avoiding the big mistake can make a massive difference.
Don’t assume your investment is falling at the same rate as the market. Your investments maybe in a much better position due to their strategic mix of varying market sectors. By following a plan recommended you may well be invested in a selection of products with proven stability over time.
Now is not the time for doubt or experimentation. Markets are volatile in their movements and getting the timing right on trades can be a precarious business. Now is the time for solid considered investment approaches.
Markets do recover, the question is when, and nobody has the answer. Follow the tips above for peace of mind, and contact us if you have any concerns.
All the best,
Andy Fenton
MorningtonFinancial Services – Financial Adviser’s
Finding how to get what you'd like from wealth
Sources:
A) http://www.morningstar.com.au 30/08/2011
