[Smart Investing] The trouble with market timing

Investments and personal finance insights from Vanguard Australia

13 May 2020 Hi everyone, In this week’s Smart Investing, we take a look at ASIC’s recent report on retail trading activity and why they warn that timing the market is more likely to lead to losses than not for the average retail investor. Vanguard Senior Financial Writer Tony Kaye also discusses why now might be the right time to revisit your investment goals and how you might approach the task.  Lastly, we have included a piece by Senior Investment Strategist Aidan Geysen discussing the merits of a total-returns investment approach coupled with a dynamic spending strategy.  As always, feel free to email us with your questions or feedback. Regards, Robin Bowerman Head of Corporate Affairs Vanguard Australia

The trouble with market timing By: Robin Bowerman Even for the brightest of professional traders, timing the market in such volatility is tough. For the more inexperienced retail investor, doing the same to pursue quick "wins" is more likely to lead to losses than not.  Read More

Do your investment goals stack up? By: Tony Kaye Depending on your circumstances, which may have necessitated impromptu investment actions during the crisis – such as the withdrawal of some superannuation funds or the selling of other financial assets – some goal adjustments may be prudent. Read More

Better way for retirees to ride out COVID-19 storm By: Aidan Geysen Rather than flounder in the face of dividend cuts, income seekers can use a different approach that smooths out volatile years. Read More

VANGUARD IN THE NEWS Over half of sustainable bond funds see returns during COVID-19 Jassmyn Goh | Money Management | 7 May 2020 Over half of sustainable bond funds have made a return since the global sell-off brought on by the COVID-19 pandemic, with most beating their sector average, according to data. FE Analytics data found that 10 out of 18 sustainable bond funds made a positive return over the three months to 30 April, 2020, within the Australian Core Strategies (ACS) universe. To read more, please visit the Money Management website. Please note the link above will show a copy of the article (where freely available), or the publisher's website if a subscription is required.

IN CASE YOU MISSED IT

How to stay the course in retirement By: Robin Bowerman For many in retirement, advice to stay the course, while important, can feel a little off base when your super fund's portfolio has dropped sharply and you are starting to feel a bit helpless. Here are three options to consider if you're in this camp.  Read More

5 things to understand about index funds By: Robin Bowerman Despite the popularity of index funds, they are still not as well understood as they should be. As you consider whether to invest in an index fund, keep these five concepts in mind. Read More

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