| Learn about zombie companies, bear and bull markets, and how much you need to start investing. | | View this email online |  |  | Welcome to this week's edition of Smart Investing.
The sharp rise in interest rates over the last year has already triggered a spike in corporate loan defaults around the world. And, lurking beneath the surface, is a growing clan of listed “corporate zombies” – companies that are barely clinging to life. But don't be too alarmed. In our lead article we explore this trend and point to the diversification benefits of index funds, particularly their ability to reduce your exposure risk to individual companies that may get into financial difficulties over time.
We also have a great chart, which compares the durations of bear and bull markets since 1980. It shows that the average length of bull markets is more than three times the average length of bears markets, and that bear markets have had far less of an effect on long-term investment performance.
Finally, there's a common misconception that you need a lot of money to start investing. We dispel this myth and others in our article, How much time and money do you really need to start investing? | | | | | Rise in defaults heralds a new wave of zombies | | Expect an increase in listed zombie companies as higher interest rates begin to bite. It's why portfolio diversification is key. | | Read article | | | | | | | Charting bear and bull markets | | Bull market surges have been longer and stronger than the bear markets that preceded them. | | Read article | | | | | | | How much time and money do you really need to start investing? | | There's a common misperception that in order to start investing, you need a large initial sum and lots of time. Here's why that's a myth. | | Read article | | | | | | | How pausing contributions can add up | | Temporarily pausing your regular investment contributions could have long-lasting financial repercussions. We've done the numbers. | | Read article | | | | | | | Should I invest in a managed fund or ETF? | | What's the difference between managed funds and ETFs? And which product type is right for you? | | Read article | | | | Vanguard and its employees wish to acknowledge the Traditional Custodians of Country throughout Australia where we operate our business. We recognise their connection to the land, water and culture and wish to pay our respects to their Elders past, present and emerging.
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