Monday, March 12, 2018

Investors need to understand what they can and can't control | afr.com

Investors need to understand what they can and can't control | afr.com: Our life as investors would be so much easier if sharemarkets were like treadmills.

Imagine if you could dial in the 8 per cent plus incline that the Australian sharemarket has delivered over the 30 years to June 30, 2017. Or the 9.4 per cent that US shares climbed in the same period.

Sure, you need the legs to be up to the challenge of the incline, but it is a predictable, steady state, and if it all gets a little too challenging you can back it off and set your expectations a little lower.

But just as running on a treadmill is not like running on the open road, sadly investing does not happen in a steady, controlled and predictable world.

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