Yes, that’s really what one fund manager said. Take a look.
The post Investing should be boring: fundie appeared first on The Motley Fool Australia. –
Losses continue on the ASX today with the benchmark S&P/ASX 200 Index (ASX: XJO) sliding a further 69.5 basis points — or 1.04% — at the time of writing.
The dip brings the index’s losses to more than 10.5% this year to date for Australia’s 200 largest companies by market capitalisation.
Yet despite the allure of certain growth stories in recent years (meme stocks included), according to one fund manager, investors should be focused on the long-term — as boring as that may sound.
The beauty of ‘unknown-unknowns’
The harsh reality is that no one can see or predict what big risks there are on the horizon.
It’s a mathematical impossibility to forecast the number of variables that could affect outcomes on the markets, let alone ASX 200 shares.
At its inception, the unknown-unknown nature of the pandemic was that unpredictable that it was unlikely to be solved using logic or predictive algorithms. If we consider a less destructive situation, logic or predicative algorithms have a great deal of difficulty trying to [make predictions].
However, there is one certainty in the markets, Quinn says. These “unknown-unknowns” mean there will “will always beÂ perpetual worry in the financial markets”.
The one guarantee we are almost prepared to give is that when new unknown-unknowns enter the macro news cycle, you can almost always expect an overreaction.
With that level of “certainty”, he says to focus on certain tenements to calm these worries — and potentially smooth ASX 200 investment returns for the long-term.
“Investing generally should be a boring, time-consuming and not an exciting endeavour,” he says, “which generally should be engaged in over a lengthy time horizon.”
The fund manager also advocates diversification and avoiding “blindly following herds”.
“Last but not least,” Quinn advises, “donât check your portfolio each day or each hour — short-term variance is all part of the long-term reward.”
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.* Scott just revealed what he believes could be the “five best ASX stocks” for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now
See The 5 Stocks
*Returns as of January 12th 2022
setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
Will the share market recover in 2022?
How long do ASX bear markets last on average?
This fund manager is optimistic on these 2 leading ASX 200 energy shares
ASX 200 midday update: ResMed’s US$1bn acquisition, tech shares continue to sink
Why I think these 2 ASX 200 dividend shares offer great buying right now
Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.