Keep your nerve in stormy markets
No investor enjoys a bear market, but how do you at least stay calm and rational? How do you keep your head when so many other people seem to be losing theirs?
No investor enjoys a bear market, but how do you at least stay calm and rational? How do you keep your head when so many other people seem to be losing theirs?
We generally encourage our clients not to follow the ebb and flow of the global stock markets. But every now and then, you can’t easily avoid it, and we’re at one of those moments now. Share prices, and specifically price falls, are once again front-page news. So, what’s going on? And what, if anything, can investors do about it?
Gene Fama, the Chicago-based professor whose ground-breaking research on investing earned him the Nobel Prize, rarely gives an interview. When he does, it’s worth taking notice. He has just given an hour-long interview to the Rational Reminder podcast and, once again, he doesn’t disappoint.
It wasn’t supposed be like this. Just when we were hoping to enjoy restriction-free living in the wake of the pandemic we’ve been bombarded with gloomy news on the economic front — particularly rising inflation.
Investing is always unpredictable. The risks and quirks in markets mean that outcomes are never certain. The best we can do is to think in terms of probabilities.
Avant Money have just announced an increase to their 5, 7 & 10-year fixed rates for new borrowers of between 0.20% and 0.30%. Their popular 7-year fixed rate will now change from 1.95% to 2.25% and their 10-year fixed rate will change from 2.10% to 2.40% for loan to values less than 60%.