In this episode, hosts Aden Wilkins and David Andrew discuss navigating uncertainty in share markets from a long-term perspective. They provide statistics showing the dangers of market timing, with David sharing his experience of the Global Financial Crisis and how they coached clients through volatility. They discuss building portfolios with enough buffers to withstand downturns. The hosts explore the emotional and behavioural aspects of investing, referencing research on how the brain processes financial losses similarly to threats. They emphasise the importance of staying disciplined and provide valuable insights on developing a purposeful long-term approach to investing despite uncertainty.
Materials:
Benefit of taking a long term approach
Australian Share Market – Market Timing Graphs
US Sharemarket returns post pullbacks
0:00-5:24: Introduction
5:24-12:06: Market timing and volatility
12:06-14:41: Navigating uncertainty
14:41-23:14: The Global Financial Crisis
23:14-28:09: Long-term investing mindset
28:09-33:33: Behavioral finance and emotions
