Nine Rules for Investors to Keep in Mind

September 22, 2015 3:36 pm

It’s a bit of a long read but is well worth the effort!

The article has been written by one of my favourite Economists, AMP’s Shane Oliver – Head of Investment Strategy and Chief Economist.

The attached note looks at nine things that are useful for investors to keep in mind.

Key Points

Investing during times of market stress and volatility can be difficult. For this reason it’s useful for investors to keep a key set of things – call them rules – in mind.

The key rules I think are: make the most of the power of compound interest; be aware that there is always a cycle; invest for the long term; diversify; turn down the noise; buy low and sell high; beware of the crowd at extremes; focus on investments offering a sustainable cash flow; and seek advice.