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We're all aware of the advice to buy low and sell high, but the reality is that investors often do the opposite. To understand why, we first need to know about the Herding Instinct.
The Reserve Bank certainly put the cat among the pigeons hiking the official cash rate by 0.25% in May. It saw the cash rate jump from a record low of 0.1% to 0.35%, and with plenty of economists tipping we could see the cash rate rise to 2% next year, it makes sense to plan ahead.
If the recent market downturn is your first experience of meaningful negative returns, I have a some good news: you have not made an awful mistake and you are not alone.
Investing insights from experts like Paul Clitheroe & Effie Zahos and more