Search by ticker code:
Generic filters

Search by ticker code:
Generic filters

Search by ticker code:
Generic filters

How I plan to keep investing in uncertain times

Let’s focus on a simple, long-term investment strategy — by building a diversified and low-cost portfolio that works in the good and the bad times.

Can investing really be simple?

I was recently listening to an audiobook called The Little Book of Behavioral Investing, which shared some really interesting points.

Firstly, as an individual investor, you don’t have to worry about career or business risk, which is your big advantage over the professionals (who are competing for promotions, status and bonuses based on short-term investing results).

You also don’t have to actively outperform a benchmark, like the ASX 200 (ASX: XJO), and report on your investments or prove how clever you are with your investment choices.

Here’s your advantage: you can choose to focus on a simple but proven long-term strategy — by building a diversified and low cost portfolio.

I’d highly recommend reading this book, The Little Book of Behavioral Investing, to better understand the behavioural forces you’re up against as an investor. Plus, if you’re ready to get started investing, check out our free courses on Rask Education.

How does a simple strategy work in uncertain times (when the pressure to complicate things starts building)?

Even the best investors know they won’t always have the willpower to invest when the headlines are scary and their portfolios are flashing red.

That’s why one of the original investors, Sir John Templeton, always had a wishlist of companies he wanted to buy when times got tough. He even gave his broker instructions to make those purchases when the market crashed, just in case. 

Sir John Templeton knew that he would struggle to execute his strategy, even as an experienced investor, because his irrational brain would try to talk him out of his plan when markets were at their most uncertain.

“The time of maximum pessimism is the best time to buy, and the time of maximum optimism is the best time to sell“. ~Sir John Templeton

I think this pressure is one reason why it’s so important to write down your investment goals and strategy and understand the reasons why you’re investing in each share or ETF.

Given we’re just managing our own money, we won’t necessarily have a big pile of cash to shop for investments on our wishlist when the market falls. So, a more realistic strategy is investing on a regular basis (and automating this if you can).

By doing so, you’re effectively saying that whatever the market is doing you will be investing. And without having to overcome the mental barriers of making the decision to buy when you’re feeling uncertain and the headlines are at their worst. 

Keep your investments simple, diversified, low-cost and regular.

Remember, investing is a marathon and not a sprint.

$50,000 per year in passive income from shares? Yes, please!

With interest rates UP, now could be one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% — or more — in dividend passive income from the best shares, LICs, or ETFs… it’s like magic.

So how do the best investors do it?

Chief Investment Officer Owen Rask has just released his brand new passive income report. Owen has outlined 10 of his favourite ETFs and shares to watch, his rules for passive income investing, why he would buy ETFs before LICs and more.

You can INSTANTLY access Owen’s report for FREE by CLICKING HERE NOW and creating a 100% FREE Rask Account.

(Psst. By creating a free Rask account, you’ll also get access to 15+ online courses, 1,000+ podcasts, invites to events, a weekly value investing newsletter and more!)

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

At the time of publishing, the author of this article does not have a financial or commercial interest in any of the companies mentioned.
Skip to content