Sep 08, 2020  | Tags: resilience, mindest, investment

Our Insights

Every investor, from sophisticated investment experts to everyday people who are faithfully tipping their money into superannuation every fortnight, have been tested through the pandemic - financially and psychologically.

As we look to rebuild through and following COVID, how do we manage our mindset and come out of this as stronger and more confident investors?

Don't dwell on the past

Let’s face the facts - the pandemic has struck, and our investments may have taken a hit. However, rather than dwelling on the past and thinking of what could have been, it’s time for you to accept the situation and try to learn from these difficult times. The most successful and resilient investors are open to their mistakes and misfortunes, and seize the opportunity to grow and thrive amidst adversity. Remember, investing is ultimately a long-term game. Chances are everyone will experience market downfalls at some point during the process, regardless of a pandemic occurring, and there are new opportunities for growth around the corner.

Focus on what you can control

In these crazy times, when you really don’t know what to expect each day and life seems restricted, you can feel helpless and defeated. So, finding the things you can control will boost your attitude and make you feel empowered again. As an investor, you can’t control the market conditions, but you can certainly control the decisions you make, the research you undertake, the advice you take and how you can adapt to the new financial environment. You also have the ability to control your strategic planning and the level of risk you’re comfortable with investing in.

Change your thinking

Taking control also means changing your thinking and attitude towards investing. Remove all the negativity, whether it be negative opinions from the media, family, friends or colleagues, and instead focus on the positives. Every financial crisis has a silver lining, and there are many promising signs of growth within different stock and property sectors for investors to look towards. If you stay discouraged and pessimistic, your investments will reflect it and your gains could take a further unnecessary dive.  

Don't operate out of your emotions

Resilient investors act on logic and a well-thought out plan, rather than impulse decisions spurred on by their emotions. Many investors fall victim to acting on their fear or anxiety and will make poor decisions that haunt them later on. Your emotions can cost you a lot of money and steer you away from your investment strategy. So, make sure you stay rational and avoid any influences on your emotions, such as media and obsessing over daily stock prices.

Build positive investment habits

Resilience isn’t formed overnight. It takes dedication in sticking to your plan and building positive investment habits. This includes conducting frequent research, sticking with what you know, diversifying your portfolio, adopting effective saving methods and seeking out trusted, qualified advice. Above all, you need to stay patient and ride out any tough times that come your way.

Be courageous

Stay strong and be brave in your decisions. It can take great courage to push through and stick to your investments, but you’ll reap great personal and financial benefits. Finally, if you have a well-thought out plan, trust it. Don’t be swayed. Instead, ask the experts if you have any doubts.

Seek out expert help

Professional advice is key to building resilience. An expert adviser can work with you on a plan for the good times and the challenges, and help ensure that your wealth comes out on top.

In constantly evolving times, it’s even more important that you build strong relationships and trust in your team to guide you down the right path.

Get Advice

CWM helps guide people through any challenge and achieve their wealth goals. 

Talk to the team at Calder Wealth Management. Call us on (08) 8373 3333 to schedule your free initial appointment.

Written by James Herriman at Calder Wealth Management.

This is general advice only and does not take into account your financial circumstances, needs and objectives. Before making any decision based on this document, you should assess your own circumstances or seek advice from a financial adviser and seek tax advice from a registered tax agent. Information is current at the date of issue and may change.