Is the sharemarket about to collapse again? Will property prices fall by 30% next year? Will unemployment reach Great Depression levels?

We’ve been through a lot over the last ten weeks - soaring unemployment, businesses closures, a fragile share and property market, and of course, the disease itself. Nerves are well and truly frayed, and so in times likes this, it’s a perfectly natural part of the human condition to jump to conclusions in the search for certainty.

The problem is, when it comes to investing, perfection and certainty simply isn’t possible. Investing is more a game of probabilities, and so, if you’re going to participate, its important to become comfortable with the idea of discomfort and messiness. And as someone who truly appreciates the beauty of symmetry, precision and linear thinking, I know how difficult getting your head around that concept can be!

But trust me, the sooner you admit that you can’t possibly know everything, regardless of the research and effort you might put into it, the easier your investment journey will be. Not only will you feel better, more relaxed, when you’re more flexible in your outlook, you’ll be far less likely to hastily react to either good or bad news as it comes your way, and consequently make poor investment decisions.

So stop trying to pick the top or the bottom, there are too many moving parts and nobody really knows.

The good news is that you don’t have to know to invest successfully. Instead, try focusing your attention on buying quality assets (ie shares, companies, properties etc) at a reasonable price (not necessarily the lowest price), relative to future earnings. When combined a good dose of patience, this mind shift can make all the difference, and improve your odds over the longer term - just don’t look for guarantees.

Rick Maggi, CFP