To share or not to share?
When it comes to investments of most kinds, long term is the best thinking. This is certainly true for share markets. While the variance in returns day by day or month by month may be huge, over longer periods of time there is far less fluctuation.
Footage of Wall Street traders shouting over each other at the stock exchange has created a misperception that investing in shares is very risky and requires minute-by-minute attention. Even with the global financial crisis, one of the most volatile, extreme & worst periods in our financial history, what had dropped in value has risen again.
Elodus manages diversified portfolios for the majority of our clients that include Australian shares, international shares, property, Australian and international fixed interest and cash. Based on our advice and management, most of our clients are in a far better position now than they were pre-GFC.
Portfolios need to be professionally managed for many reasons, including maintaining proper diversification, communicating significant market movements and making sure investments are aligned with our client’s lifestyle and financial goals. Trying to time the entry and exit of investments into volatile markets is NOT a key indicator of value or success. Additionally, decisions should be rational not emotional – they should NOT be based on fear or a lack of understanding. It makes much more sense to outsource to a professional who will make the best decisions based on all the factors that affect your overall wellbeing, including your investments.
Motivation, discipline, guidance and accountability are all required – we ensure this is what our clients receive so that they are prepared for difficult times but can also take advantage of opportunities.