Keep Your Powder Dry
Money Magazine Australia|March 2019

Value investors should be quick to take advantage of the opportunities provided by volatile markets.

Mark Story
Keep Your Powder Dry

If you want to know the difference a year makes when investing, just look at the gulf in the average super fund balance, which dived from around 10% in 2017 to between -1% and -2% a year later. By all accounts, 2019 appears to be threatening even greater trepidation than last year, when the S&P/ASX 200 fell 6.9% (excluding dividends), which marked the biggest loss for the local sharemarket since 2011.

However, despite smouldering big-ticket macro issues – including the late-cycle stock sell-off, trade wars, falling GDP growth in China and, closer to home, tightening credit conditions, along with declining house prices – investors shouldn’t take overly pessimistic market commentary too seriously. That’s the view of Paul Moore, chief investment officer of PM Capital, who reminds investors how irrelevant these events can be – and with Australian shares up over 4% in January alone he’s got a point.

Moore says there’s never been a more urgent need for investors to understand that future returns will come from avoiding the continuum of negative news and focusing on how their capital is deployed over a longterm horizon. “In reality, one only needs a few good investments in their lifetime to produce attractive returns, and they tend to come around every 10 or so years.”

New way of thinking

What’s needed now, says Moore, is a fresh approach to looking at where future returns are more likely to come from. In 2019, he urges investors to recognise a tectonic-like shift playing out in the structural drivers of markets. It’s because of this structural shift that he expects the next 10 years to be more determined by the “serious investor” and less by the momentum and hype that have dominated the market and accentuated volatility over the past decade.

Diese Geschichte stammt aus der March 2019-Ausgabe von Money Magazine Australia.

Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.

Diese Geschichte stammt aus der March 2019-Ausgabe von Money Magazine Australia.

Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.

WEITERE ARTIKEL AUS MONEY MAGAZINE AUSTRALIAAlle anzeigen
An outrageous, beautiful monopoly
Money Magazine Australia

An outrageous, beautiful monopoly

Telstra's mobile business is a cash machine with few competitors, giving it the highest returns in the world.

time-read
4 Minuten  |
July 2024
Drop the anchor to judge value
Money Magazine Australia

Drop the anchor to judge value

Buying and selling decisions should be based on where a stock price is going, not where it has been.

time-read
3 Minuten  |
July 2024
Powering the AI boom
Money Magazine Australia

Powering the AI boom

Beyond the software and chipmakers, where will the energy come from?

time-read
3 Minuten  |
July 2024
Get into life
Money Magazine Australia

Get into life

Tucked inside super are products that can protect you from life's inevitable uncertainties.

time-read
5 Minuten  |
July 2024
Paths to home ownership
Money Magazine Australia

Paths to home ownership

Taking the road less travelled can sometimes deliver unexpected benefits.

time-read
5 Minuten  |
July 2024
Sold! Quick ways to add value
Money Magazine Australia

Sold! Quick ways to add value

Small, strategic changes can have a big impact on the look and feel of your home. And get you a better price on auction day.

time-read
5 Minuten  |
July 2024
Money lessons the kids need to know
Money Magazine Australia

Money lessons the kids need to know

Your children can learn a lot from your past money mishaps. Here are eight financial conversations I have had with mine.

time-read
4 Minuten  |
July 2024
Property-investing rules: are they likely to change?
Money Magazine Australia

Property-investing rules: are they likely to change?

The pressure for the government to curb the tax benefits of tax concessions, such as negative gearing and the capital gains tax discount, is unrelenting. Most recently, independent senators David Pocock and Jacqui Lambie proposed five options for paring back investment property tax concessions, with savings to the Federal budget of up to $60 billion over the next decade.

time-read
3 Minuten  |
July 2024
What's love got to do with it?
Money Magazine Australia

What's love got to do with it?

A rollercoaster of emotions could be driving poor crypto behaviour.

time-read
3 Minuten  |
July 2024
Are we ready to be cash-free?
Money Magazine Australia

Are we ready to be cash-free?

Saying goodbye to our piggy banks too soon could leave small businesses in the dark when problems arise.

time-read
2 Minuten  |
July 2024