If you were a global investor, you would have missed out on a difficult 2018, when global equities ended the year down 9%. You would have also missed a resurgent 2019, over which the MSCI World Index returned 28%.
On waking up, you'd have discovered that, over the period, your portfolio had delivered an annualised return of 8% - not too bad considering the negative headlines in 2018. Not outstanding, either, given the boom reported in the following year.
As this piece by Orbis Investments notes, the approach of "sleeping through it" would have some "powerful behavioural advantages" inasmuch as you'd be less susceptible to short-term market noise. But it's only half the story, as sleeping through a different period in markets would yield a very different result.
If you read this Orbis Investments article, you will learn:
The opinions expressed in this content are those of the author shown, and do not necessarily represent those of No More Practice Education Pty Ltd or its related entities. All content is intended for a professional financial adviser audience only and does not constitute financial advice. To view our full terms and conditions, click here
With markets taking a serious beating due to the coronavirus pandemic, i....
20 years ago it was the tech bubble, and not long after that the bubble ....
19 March, 2020
With markets taking a serious beating due to the coronavirus pandemic, it's worth considering what might be getting lost in the noise.