It sometimes seems that the worry list for investors has become more threatening and more confusing than ever. This was an issue prior to coronavirus – with trade wars, President Trump, social polarisation, tensions with China, concerns the Eurozone would break apart, slow growth in Australia, and ever-present predictions of a new global financial collapse. Coronavirus has only added to the worries with hourly updates about new cases, lockdowns, vaccines, etc. It sometimes seems that if coronavirus won’t get us, inflation and the mountain of debt will.
To be sure these risks are real and can’t be ignored, but the risks around investing seem to receive ever higher prominence these days as the digital age enables the rapid dissemination of news and opinion. The danger is that all this noise is making us worse investors as we lurch from one worry to the next. The key to investor success is to manage the noise and stay focussed.
This is an update of a note I wrote a few years ago but the need to turn down the noise is more important than ever…
Note: If in doubt, speak to your Financial Advisor/Planner, or call Westmount Financial/Rick Maggi (Perth)