Introduction

In an age where investing has evolved from an elite club to a widespread phenomenon, even the novice investor can thrive. But have you ever stopped to wonder what separates successful investors from the rest?

"Investing should be more like watching paint dry or watching grass grow. If you want excitement, take $800 and go to Las Vegas." - Paul Samuelson

The answer lies in mastering the art of investing, a skill accessible to anyone willing to learn but that requires patience, consistency and discipline… much like any artform.

Introduction

As investors navigate through unpredictable and volatile economic times, it is essential to consider asset classes that can provide a level of stability and protection against market fluctuations. One such asset that has stood the test of time is gold. For centuries, gold has been a symbol of wealth and has played an essential role in the global economy. In this article, we will explore why investors turn to gold during uncertain times, the benefits and consequences of investing in gold, and how investors can get exposure to this precious metal.

Introduction

Investment and portfolio building has traditionally been a male-dominated world, but these days more women are trading on the market – and they’re good at it!

According to an ASX Australian Investor Study completed in 2020, women make up 42% of Australian investors, yet 45% of those only began investing in the year prior to 2020.

It’s intriguing that younger women – known as Next Generation Investors aged 18 - 25 – are taking up stock portfolios. Their goals include saving for a holiday (50%) or paying down existing debt (34%).

Introduction

According to the Collins English Online Dictionary, a get-rich-quick scheme can be defined as, a promise to make a person extremely wealthy over a short period of time, often with little effort and no risk.

If you think that sounds a bit dodgy, you could be right. Yet ordinarily sensible and cautious people signup to such schemes every day.

In difficult times, we can be forgiven for trying to find a simple way to move our finances forward, yet if it seems too good to be true…well, you know the rest.

Introduction

It’s never been easy to save the deposit for a home, but low interest rates make it even more difficult. For starters low rates drive up house prices, forcing homebuyers to come up with bigger deposit amounts. Then those low rates rob buyers of the ability to earn a decent, low risk return on their hard-earned savings. When the traditional savings vehicles of homebuyers – savings accounts and term deposits – offer only token rates of interest, aspiring homebuyers start to ask themselves what can they do to build their deposit more quickly?

Introduction

What are some of the big ideas, the themes, that are likely to influence the economy, both locally and globally, in coming years? How about Australia’s aging population? As we collectively grow older we should see increasing demand for assisted accommodation, leisure and entertainment services, escorted travel, pharmaceuticals, healthcare and more. Waste is a growing problem. What does this mean for the development of new recycling technologies and recycled products? Which is the next emerging market or technology set to grow at a spectacular rate?

Introduction

Just as night follows day, it seems part of the regular cycle of the world’s share markets that downturns and falling prices follow good times and rising prices.

The impact of the COVID-19 Global Pandemic was typical of such downturns, prompting a 35 per cent sell off in world share markets and a dramatic fall in economic activity. Tourism and hospitality industries, in particular, were brought to their knees by sudden and prolonged closures.

For many, it has prompted memories of other equally, and sometimes more devastating, downturns in the world’s share markets.

Introduction

The potential financial results of investing can feel limitless, and it can be tempting to think that just one stock pick could make you an overnight millionaire. Yes, stock-picking can have a place in your investment strategy, but if you're focused on the allure of a "get rich quick" mentality, you may be gambling, not investing.

What's the difference?

Introduction

Most people view share market downturns as unequivocally bad events. Suddenly, hard earned savings aren’t worth as much as they were yesterday. It seems as if our money is evaporating, and in the heat of the moment selling up can look like the best course of action.

The alternative view

But on the opposite side of each share sale is a buyer who thinks that they are getting a bargain. Instead of getting 10 shares to the dollar yesterday, they might pick up 12 or 15 to the dollar today. When the market recovers, the bargain hunters can book a tidy profit.

Introduction

Popular in the days before compulsory superannuation, investment bonds fell out of favour as super became the preferred tax-advantaged environment. With tighter restrictions on superannuation contribution limits, bonds might be worth a fresh look.

Investment bonds are a type of insurance policy primarily used as an investment vehicle. Available from a range of providers, investors can choose from a suite of underlying investments in much the same way as regular managed funds. Investment bonds shouldn’t be confused with interest-paying government or corporate bonds. They are a unique type of asset offering a range of advantages.

Introduction

Introduction

Introduction

And so too, a man is a fool if he thinks he can successfully predict the future of the global economy. Like the weather it can be the most unpredictable and destructive threat to your investment earnings. But with a carefully built portfolio based on sound foundations, you have a much better chance of weathering any financial storm.