Nothing is certain

In the context of investor concern about equity markets hitting new all-time highs, this week I was asked;

“but we live in uncertain times, Rob”.

In the context of investor concern about equity markets hitting new all-time highs, this week I was asked;

“but we live in uncertain times, Rob”.

I responded with….”times are always uncertain…..in the past 30 years, when have we felt ‘certain’?”

I continued to say, that even your bank cash deposits aren’t certain.

Forgetting the creditworthiness of the bank (which was tested in 2007-2008), my deposit rate was 4% in 1997.. today, a 3 months term deposit at an Australian bank is 0.10% p.a..

Hardly something to have counted as being ‘certain’.

Such financial illiteracy continues to baffle me.

Managing and being aware of risk is one thing, but being tainted by the media and what “doomsday” pundits say, can be damaging to your wealth.

Uncertainty and Volatility are the price an investor pays for longer term capital gains, unless you have bank deposits.

August 15, 2021

by Rob Zdravevski

rob@karriasset.com.au