Buy shares! Are you mad?
These are definitely stormy economic times. Our very faith in investing is being tested and our long held beliefs in BUY & HOLD strategies are being fractured.
Many experts are saying the markets will fall further, whilst others have been calling the bottom for some time and have suggested markets, especially in Australia, have been oversold.
So who is right? The answer is simple: no one knows and long-term wealth builders should not care!
Even though most of us have never seen these types of global economic conditions, there is one thing for sure: ‘History will repeat itself’. The ‘bulls’ and ‘bears’ will continue their tug of war, with both teams having their wins and losses for another 100 years and more. And like today, where we are comparing ourselves to the Great Depression of 1930, most likely our grandchildren in 2085 or so will be comparing themselves to the Global Financial Crisis of 2008.
Investors need to keep the faith and stick to their long-term wealth building strategies.
This does not mean we do not change our asset allocation to take advantage of economic cycles. Our investment strategy may be a very simple one, such as moving more of our money into cash as the interest rate cycle peaks and moving more of our money into growth assets as cash rates bottom.
No matter where we are in the economic cycle, long term wealth builders need some exposure to growth assets like shares and property.
In light of our views on long term wealth building through long term exposure to growth assets, InvestSMART launched our WealthBuilder service last week. WealthBuilder is designed to help investors re-enter the market confidently.
WealthBuilder provides free access to recommended fund portfolios, which have been:
- Independently researched by Zenith Investment Partners
- Chosen to diversify your money over multiple asset classes, and
- Available on Australia's most popular investment platform
Please take a look at our WealthBuilder service at www.wealthbuilder.com.au