Volatility provides an opportunity to cull a portfolio and also look for opportunities
Volatility … the enemy of the long-term investor and the exposed. Volatility ... the friend of the agile and the cashed up.
As share prices lurched in the past couple of months, investors have again been left to wonder their best strategy in surging but increasingly volatile markets.
The common cry is: “Don’t panic!” It’s true that panic never helps but certainly urgent action – be it buying or selling – is often the prudent course. Doing nothing simply leaves you exposed to potential losses or blind to opportunity.
Go back to the premise of the stockmarket, or any market for that matter. Buy when prices are low, sell when they are high. That part is easy to understand. The harder part is trying to interpret when markets are low or high.
But even here there are some good gauges. Look, for example, at how much a market has run since its clearly obvious previous low. In the case of the All Ordinaries index, you can see it around February 2016, when the world wondered about Greece’s solvency and Europe’s ability to cope.
Esta historia es de la edición March 2018 de Money Magazine Australia.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 8500 revistas y periódicos.
Ya eres suscriptor ? Conectar
Esta historia es de la edición March 2018 de Money Magazine Australia.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 8500 revistas y periódicos.
Ya eres suscriptor? Conectar
Is the public market shrinking?
Australia needs a healthy stock market to give companies access to funds and to allow retail investors to build wealth.
India: three steps to transformation
Massive investment and extensive reforms turbocharge the economy.
The ballet of business
Changing direction, products, models and marketing is a hard task for a business. We chart what it takes to turn a business around, plus profile four successful pivots.
Save money and the planet
Could the high cost of living give us the incentive we need to reduce how much water and energy we use or waste? These eco-friendly household tips will help you do just that.
AI adoption is the new black
Artificial intelligence is set to reshape the commercial world, and small enterprises can’t afford to miss the boat.
Spam attack! Murky laws jam our inboxes
Unwanted marketing material is one of the pain points of modern life.
From rags to riches in style
Rich Tran sported a bowl cut until he was 14 years old and had no intention of becoming a hairdresser.
New work deals are killing the 'old' office
The Covid pandemic and the subsequent lockdowns accelerated the trend to more people working from home. It was a mixed experience.
Points taken: the truth about rewards
Can hopping between credit cards really boost your frequent flyer haul and give you cheap or free travel - or is it doing more harm than good behind the scenes? Money puts it to the test.
Shortcuts to own a home
Innovative ideas with a focus on low costs and sustainability could help solve the housing crunch.