This time last year we noted the almost unheard of lack of volatility in equity markets. That certainly reverted to normal and that’s important to note. 2017 was an anomaly, equity markets didn’t find much they didn’t like in 2017. However, in 2018 equity markets found plenty they didn’t like, firstly at the beginning of the year, though that was quickly shaken off, but then they found more they didn’t like towards the end of the year. Again, like every other correction this will likely pass. Markets price information in, they adjust and eventually move on.
Risk also found its way to other areas in 2018. Sydney and Melbourne property have endured a poor year. Our national fixation on real estate is proving painful for those who entered the party late in those two cities. For the young, it required extreme debt unless they had parents guaranteeing loans, sadly they were the ones told to get in before it was too late and they were priced out forever. Just because an asset is physical, doesn’t mean it’s not subject to speculative frenzy.
Speaking of which, this time last year bitcoin was a religion. Anyone who criticised it was held up by owners as a uneducated heretic who didn’t understand the future.
The thing about the future? It comes fast. In real dollars, this is what the end of speculative frenzy can look like.
Our Best of 2018
An Investor Who Knows Too Much? Looking at your portfolio too much when there’s no good reason? Take a lesson from this man in the US who switched off totally after Donald Trump was elected.
A Real Estate Spruik In Pictures Unwittingly found yourself at a real estate spruiking seminar? This might help you recognise a spruiker’s tactics.
The Fortnite Power of Attorney We accept young people need some guidance, but when it comes to the elderly it can be a touchy subject.
Rick’s Rules Unlikely To Work For You Big rewards from speculating are very alluring, but the reality is few of us have the discipline to weather the massive declines some shares have before their eventual success.
The Self Driving Portfolio We delegate control in various areas of our life, but some of us believe ‘being in control’ of our investments. The data says it’s not true.
The Worst Year Quite often we hear about the best case scenarios when investing, but it’s very useful to sometimes look at the worst and how our decisions during those times are critical.
Some Things to Read Over The Holidays
The Ultra Rich Aren’t Happy With Their Wealth The instinct to measure and compare doesn’t disappear once people have an obscene amount of money.
Talking About Money Is Extremely Hard. Do It Anyway Is it hard for you to talk about money with your spouse or partner?
Retiring Retirement A growing portion of the elderly look and act anything but.
My Dad’s Friendship With Charles Barkley The story of a friendship between an ordinary man and former NBA basketballer Charles Barkley.
52 things I learned in 2018 A list of interesting and odd things one man has learned in 2018.
Finally, if you missed our recent presentations by Canadian retirement expert Barry LaValley, you can watch Barry’s engaging talk to MFG clients below.
With that, the MFG office will be closed from Friday 21 December at 5pm and we will reopen on Monday 7 January 2019.
This represents general information only. Before making any financial or investment decisions, we recommend you consult a financial planner to take into account your personal investment objectives, financial situation and individual needs.
