One of our more popular financial services is investment planning. We know people in Perth work hard and expect life to repay them in kind. One of the best ways to ensure that you are able to enjoy the fruits of your labours is to invest your money wisely.
Recently, Dr Shane Oliver, Chief Economist and Head of Investment Strategy at AMP Capital, published a blog piece called, “3 tips for investing in the new financial year.” The piece consisted of a short video with three investment tips for the current economy. We would like to tell you about them.*
Turn Down the Noise
Dr Oliver expects plenty of volatility in the coming financial year. However, he also sees the “noise” surrounding volatility as a distraction that can “knock you off your strategy.” In other words, Dr Oliver warns that the “noise” of short term losses can cause an investor to abandon an asset due to short term losses instead of waiting for the asset to rebound in the long term.*
Diversify Your Portfolio
Dr Oliver warns against becoming too “confident in one particular asset” because it can make you too dependent upon the performance of that asset. He prefers a diversified approach that offers protection in case one asset performs poorly.*
Take an Active Approach
Dr Oliver believes that an active approach to investment management, paying close attention to the “asset mix.” *
Call Approved Financial Planners Today
Remember: these tips are general in nature and do not constitute individual advice. We will be happy to provide individual advice, but we aren’t allowed to do so in a blog post because everyone’s financial situation is different.
We can help you strike a balance between the flexibility of an active approach and the stability of “turning down the noise.”
To learn more or for a consult and individual advice, call Approved Financial Planners today: 08 6462 0888.
*AMP Capital: “3 tips for investing in the new financial year.” Dr Shane Oliver.
https://www.ampcapital.com.au/site-assets/articles/market-watch/2015/july/3-tips-for-investing-in-the-new-financial-year