Newsletter – July 2022

This issue explains recency bias, a phenomenon whereby investors let short-term performance influence their decisions, and ways to counter this, instead seeing the silver lining in market volatility.

This issue covers built-in ‘shock absorbers’ within your portfolio to cushion the effect of market volatility.

Our theme this month is diversification. Diversifying investments can mitigate risk by balancing the ups and downs of individual shares, and individual countries to reduce their impact on your entire portfolio. A diversified portfolio is more resilient because it’s designed to capture growth while providing relative security during market downturns.

Our theme this month is interest rates. After the highest interest rates since 2008, the Official Cash Rate (OCR) was cut in August, marking the first cut since 2020. In this newsletter we outline what lower interest rates mean for your portfolio.

This issue covers the importance of being invested, through the highs and lows, over the longer term.