Discover how to balance safety and growth with Term Deposits and other common investment options. Learn why maintaining a diversified investment strategy can be wiser for New Zealand savers, even with attractive term deposit rates. Get expert insights from Rutherford Rede on creating a resilient financial plan.
Henry Ford
None of us like volatility in the investments we make. Without it though our returns will be lower.
But how to achieve the returns you need to live your best life, while at the same time sleep at night.
Things to avoid; don’t try to predict the unpredictable.
What to do; Accept a range of outcomes in the short term and rely on the long term.
Five decades of experience tells David Booth those that are best at managing risk, also have the best lives.
Read the full text of David’s paper here.
There is a saying “From clogs to clogs in three generations” This comes from the idea that the first generation establishes business’s, the second builds it and the third loses it. This plays out when tracking what happened to millionaire families in the United States.
Morningstar have looked back at 2023 and find the lessons reinforce established long-term principles. We have summarised their article.
FOMO is real, but the big mistake is having FOMO about the wrong things. Take it from no higher authority than the U. S Securities Commission. FOMO on missing out on investing is alternative assets is wasted energy. The best FOMO to have is when you miss out on planning for your future!
Last year was one of the worst years ever for financial markets. Call it recency or loss aversion or some other Daniel Kahneman bias but for some reason, our brains are hard-wired to assume big losses will be followed by additional losses (just like we assume big gains will be followed by additional gains)
How do Trustees protect themselves against the risk of them being held personally accountable for investment decisions they make?
The collapse of First Republic Bank is a harsh reminder that any stock can go to zero, no matter how established a company is, or how loyal and wealthy its customers are.
2022 was one of the worst years on record for performance in the global bond market. The Barclays U.S Aggregate Bond Index (a broad measure of the U.S. bond market) posted its worst year since records began in 1976, down 13%.
A normal pathway through life will deliver some unexpected crises. To say they are unexpected is perhaps not correct as we all expect to face problems at some point. It’s just that they arrive unexpectedly.