When the sharemarket is particularly volatile, more investors are likely to try to time the market – that is attempting to pick the best time to buy and sell shares. This could, however, be a costly mistake for many of these investors.
Despite the difficult investment markets, the market capitalisation of Exchange Traded Funds (ETFs) trading on the Australian Securities Exchange (ASX) grew by almost 9 percent to more than $5 billion during the 12 months to May.
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Spread risk to beat blues
Neale Prior, 09 July 12 Financial planner Rob Pyne believes the days are long gone when rising markets helped offset the damage created by a poorly structured portfolio. Mr Pyne, of Como-based HPH Solutions, said the best protection against volatility was diversification, across asset classes and within each asset classes.
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