Ignore political rhetoric, says AUI

australian-unity-investments/financial-markets/

27 August 2013
| By Staff |
image
image image
expand image

Investors have been urged to drown out pre-election market speculation that puts logical, long-term investment choices at risk.   

Less than two weeks out from the Federal Election, the market is cluttered by politicians and commentators focused on short-term economic uncertainties, Australian Unity Investments (AUI) head of portfolio management Edward Smith believes. “Unfortunately, such commentary can get in the way of investors making sensible decisions about their long-term needs,” he added.  

Smith said getting caught up in the excitement of rhetoric and promises could lead to poor decision-making.  

“Investors need to learn not to be distracted or influenced by the sort of short-term issues that politicians usually focus on, such as economic predictions for next year or the year after, or even short-term regional issues,” he said.  

“What pundits believe could happen in the next few years is typically already priced in financial markets. The rule of thumb is that if a statement or policy seems certain, then it has already been taken into account in the price of an investment.” 

Smith said a more sensible approach would be to encourage investor optimism and diversified portfolios.  

“Long-term investors need to ignore such actions and reactions, and shouldn’t feel any pressure to make quick market judgements themselves.”

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

5 months ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

5 months 1 week ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

7 months 1 week ago

The FSCP has issued a written direction to an adviser who charged clients “extraordinary fees” for inappropriate and conflicted advice, as well as encouraged them to swit...

1 week 6 days ago

ASIC has cancelled the AFSL of an advice firm associated with Shield and First Guardian collapses, and permanently banned its responsible manager. ...

3 weeks 2 days ago

ASIC has confirmed the industry funding levy for the 2024–25 financial year, and how much licensees can expect to pay....

3 days 21 hours ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
2
DomaCom DFS Mortgage
95.46 3 y p.a(%)
5