We are often asked “is now a good time to invest?” Whether it be in property or shares, the short answer for anyone with a long-term time horizon is YES. The greatest investors of all time agree on one simple notion – “time in the market beats timing the market”.
For example, property in Australia’s capital cities has achieved an average annual growth rate of almost 6% over the last 30 years. However, this growth has not been in a straight line, with several market downturns throughout this period, the most notable being the Global Financial Crisis as well as several interest rate tightening cycles. This is highlighted in the U.S. share market, where if you missed the 10 best performing days over the same 30-year period, your total performance would have been halved. Interestingly, 78% of these days occurred in a down market or very early in a market recovery, reminding us that timing the market in anticipation of a market recovery before investing is fraught with danger.
History has shown that the most favourable outcomes are achieved by those who buy assets and leave them to compound throughout all periods, rather than making emotionally driven ill-informed decisions on when to buy and sell. At Northhaven Financial Management, our financial advisers can guide you in your investing journey, creating a personal financial plan and working with you through the ups and downs of the market to achieve your financial goals.
Contact us for an obligation-free chat to see how we can help you.
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