The goal is to create wealth by using money effectively, writes Lynette Dicey
The goal is to create wealth by using money effectively, writes Lynette Dicey
While we cannot control or accurately predict market movements or macroeconomic factors, this does not mean we have no control of our own financial future. There are various decisions that we can make to ensure a more secure outlook for ourselves, even in the midst of the uncertainty.
We all have good intentions to make sound financial decisions, but the temptation to spend makes it difficult to commit – especially during the festive season.
Given current market conditions, it is understandable that some investors would want to ‘take refuge’ in cash to ride out low equity returns – but is that a good strategy? The answer is more complicated than simply looking at recent returns.
Five principles to find the right investment manager
If the festive season sends you into a panic and sees you mentally tallying up added expenses, such as gifts, getaways and groceries, you may need a financial strategy to help you cope.
Since the global financial crisis of 2007-2008, most of the financial world has experienced a sustained period of generationally low interest rates as central banks have tried to inject growth into their economies
We have written regularly about investor behaviour, noting how emotions can be our worst enemy. Driven by fear and greed, many investors buy high and sell low and tend to invest based on past performance.
As the fund universe increases, top quartile ‘alpha’ is decreasing due to greater performance convergence.
Our investment goals depend on our personal priorities in life and there is no generic set of goals that applies to everyone, and no set timeline for achieving them.