Chapter 1: Why do bad news headlines mislead investors?
You're listening to a Sharesies podcast. Kerry, you've been around markets for a long time now. Does that make it any easier when things are volatile to keep your cool?
Yeah, I think so, yes. I mean, you know, you'd have to be a bit of a fool not to, when you've been through quite a few downturns, not to see that... the markets do always recover, despite the fact that each time people do say it's different this time, but things come right. So yes, yeah, it's one of the nice things about being older. You've seen it all before and it all comes out okay.
should investors be thinking about this latest situation in contrast to that uniqueness of what happened around the COVID crash?
Yes, well in COVID the market's crashing.
Chapter 2: What should investors do in response to market volatility?
Lately they've in fact some of the American indexes have been hitting record highs. It's quite puzzling to most people what's going on in the markets and while we all worry about what's going on in the world in terms of
wars of course we do but in terms of your investments hopefully your investments and shares it's money that you don't plan or don't need to spend in the next couple of years and so just hang in there and it'll come right you can get me back on here Helen in five years and say ah Mary but no I'm pretty confident that if you did that all would be well
We live in a media world. You know, you're connected. There's many things coming at you all day, every day. And the headlines are often negative. It's hard not to be influenced. What should investors do given we live in this world?
Yeah, ignore them probably.
Chapter 3: How does media influence investor behavior?
Yeah, it's... If you're a journalist, of course, you're going to go for the story. And today's story is that shares or bonds or gold or whatever has plunged, whereas the other things have just cruised along that day. I mean, it's a little bit like coverage of weather disasters. You hear all the time that there's been terrible weather in such and such a town.
Chapter 4: What lessons can we learn from past market downturns?
And, you know, the pictures on TV are showing the landslides and the floods and et cetera. And meanwhile, people who live there are saying, oh, on my street, it was all totally fine. And the media didn't cover that. They gave a distorted picture.
But from the point of view of the journos, because I have to say this because I've been one for my whole career, you're going to go for the unusual, the different.
Chapter 5: What is the best strategy for maintaining investment confidence?
And therefore, in investment, you're going to go for whatever's been dramatic today. Of course you are. And, but people have got to sort of put that in context and, and no, just, just make another cup of tea and go for a walk and go to the beach or into the bush actually, you know, it's good for your soul and, and yeah. You don't need to do anything with your investments.
Just leave them.