At Approved Financial Planners, we have more than 40 years combined experience in providing investment planning help to clients in the Perth area. Now that we are working with AMP Capital, we also have their wealth of knowledge backing us in our efforts to help you maximise your investments.
Recently the AMP Capital Chief Economist and Head of Investment Strategy and Economics, Dr Shane Oliver, wrote about investment planning in the Internet age in his column, “Oliver’s Insights.” According to Dr Oliver, the more exposure consumers receive to information about the performance of their investments, the greater the risk of disappointment. This disappointment can cause consumers to make what Dr Oliver refers to as “poor short term investment decisions.” *
According to Dr Oliver, this risk is being “accentuated” by greater access to information about how investments are performing short term. This access often involves what Dr Oliver refers to as a “worry list…via traditional media” and apps that bring this information straight into our phones. *
Dr Oliver is now convinced that investors need to “try and turn down the noise” regarding their investments. According to Dr Oliver, consumers are exposed to the aforementioned “worry list” on a regular basis. Dr Oliver believes this “worry list” is filled with ideas that could lead consumers to believe another financial crisis is coming. *
This list includes items such as Russia, China, the Middle East, deflation, hyperinflation, debt, budget deficits, emerging markets, “the Fed” and the Australian property market. Dr Oliver says that he finds it “hard to believe” that things nowadays are any worse than they were 100 years ago, but that the information and concerns are now “regularly in our face.”
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*AMP Capital. Oliver’s Insights. The perils of investors of too much information in the app age. 12 November 2015.