Investment clock ‘ticks’ past property
The investment clock has ‘ticked’ past property as an asset class, making it the time to gain exposure in that sector, according to Wealth Within.
Dale Gillham, Wealth Within chief analyst, said the stockmarket had been underperforming in many sectors and that represented better buying opportunities in property.
“Understanding when the right time to enter an asset is very important, as you want to gain a solid return from both income and capital gains,” Gillham said.
“That said, what is even more critical is knowing the right time to exit. In my experience, investors tend to hang onto poor performing asset classes or hang on way too long in the hope they will perform better.
“As [Warren] Buffett states, 'sell in boom and buy in doom', which means buy when assets are priced low and sell when they are high because this way you will avoid the ugly rollercoaster ride that the majority of investors endure.”
Gillham said the idea of an investment clock was to look for opportunities in asset classes that were underperforming and likely to move with the next phase of the clock.
“In short, you are looking to buy just before the asset begins to rise not after it has already risen,” Gillham said.
“Sadly, too many investors are indecisive when it comes to investing and jump from one investment to another hoping to get into the next best thing after it has already risen strongly.”
AUTHOR
Chris Dastoor
Recommended for you
BT is to launch a new low-cost “Focus” investment menu for its Panorama platform this October, in partnership with Vanguard, seeking to compete with industry superannuation funds.
Net gains of financial advisers have already doubled since the start of FY25, according to this week’s Padua Wealth Data, with momentum gathering pace far faster than the previous financial year.
National advice firm MiQ Private Wealth has appointed a new chief executive to lead the business through a “transformative era” after penning a partnership deal with AZ NGA earlier this month.
WT Financial’s managing director, Keith Cullen, believes the firm’s Hubco model with Merchant Wealth Partners will be a “repeatable growth model” for the business as it scales its adviser numbers.
