Blog
February 7, 2018
Investors shouldn’t overlook that there are two components to sharemarket returns – dividend yield and capital gains (or losses). Few investors would have missed the news reports of late pointing out that although Australia’s sharemarket has broken through the 6000-point mark, it’s still below the record pre-GFC high. But looking at share price movements alone can give investors a misleading impression and encourage them to overreact to short-term market shifts and other market “noise”. And by excessively focussing on asset price movements, investors may overlook the rewards from compounding total returns (as returns are earned on past returns) and from […]
February 7, 2018
Stop procrastinating. These two words can provide an excellent starting point for investors who are determined to set meaningful resolutions and strategies for 2018 and beyond. Behavioural economists have long warned that the common traits of procrastination and inertia can be highly detrimental to investors. Most of us would recognise the long-term rewards of setting realistic investment goals, creating an appropriately-diversified portfolio and saving more for retirement. Yet even with the best intentions, we may never quite get around to it. In short, we procrastinate and waste opportunities to improve our chances of investment success. Each of the following points […]
February 7, 2018
It is about now when those well-intentioned New Year resolutions start to come under pressure. The summer holidays are behind us, schools are back and the rhythm of life is returning to a familiar routine. The bigger, bolder ambitions for the New Year are often the first to fall by the wayside simply because of the level of difficulty. But instead of thinking big and bold what would the impact be of making a small change. Nothing radical, more of an adjustment than a rewrite of your lifestyle. It is probably safe to assume that not too many people had […]