In these uncertain times it is easy to feel like things are out of control.
It’s important to realise that investment markets are moving up and down all the time – stability is not ‘normal’.
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Your investor risk profile is a combination of both your risk capacity and your risk tolerance and directly affects the type of investment funds or options you should be considering.
Everything is a bit up and down at the moment, including investment markets and therefore KiwiSaver balances. Of course, the value of your KiwiSaver investments (and your KiwiSaver balance) goes up and down all the time, but the impact of Covid-19 has seen more movement than usual.
When investment markets start bouncing around, and especially when they fall, investors can often have a sense of unease or even mild panic. When this happens, it is important to maintain some discipline and ensure you stick to your investment plan.
Each year, Mercer produces its Periodic Table of investment returns. which tracks 16 major asset classes and ranks how each has performed, on an annual basis, over the last 10 years. A glance at the Table quickly highlights how challenging it is to unearth patterns and predict what the years ahead may hold.
The news is currently full of stories about Bitcoin – selling a story about how to become a millionaire overnight. But the Financial Markets Authority are receiving an increasing number of complaints from investors who’ve lost money using cryptocurrency exchanges.