What's a better way to invest?
When it comes to investing, we don't know if there can ever be the "best" or perfect way.
Here are some insights from our first The OneLife Circle event: 'Are You Investing... or Just Guessing'?.
1. Embrace market pricing
The financial market is a supercomputer, processing vast amounts of information every second through countless trades.
This means that prices quickly reflect all available information.
Embracing the market’s wisdom can help us make better investment decisions.
2. Don't try to outguess the market
Data shows that consistently beating the market is incredibly difficult.
Only a small percentage of funds outperform their benchmarks over the long term.
Focus on proven strategies, not trying to predict the unpredictable.
3. Resist chasing past performance
Relying on past returns to pick funds is a common mistake.
Research consistently shows that top-performing funds rarely maintain their lead.
Focus on a fund's underlying strategy and costs, not just its historical track record.
4. Stay invested
For decades, financial markets have consistently rewarded patient, long-term investors.
By staying invested, you allow your capital to grow and outpace inflation, building significant wealth over time.
5. Target higher returns
Academic research has identified specific drivers of higher expected returns in stocks and bonds.
By understanding and systematically investing in these areas, you can aim to improve your portfolio's performance.
6. Diversify internationally
Limiting your investments to a single country can restrict your growth potential.
A globally diversified portfolio opens doors to higher returns wherever they emerge, reducing risk and broadening opportunities.
7. Avoid market timing
Research consistently shows that successfully timing the market is nearly impossible.
Missing just a few good days can crush returns.
The most effective strategy is often to stay consistently invested.
8. Manage your emotions
Market fluctuations often trigger emotional responses, leading to impulsive decisions.
Successful investors learn to separate their emotions from their investment strategy, adhering to a disciplined plan even during volatile times.
9. Look beyond the headlines
Daily financial headlines often aim to provoke rather than inform.
Learn to discern credible information from sensationalism.
Maintaining investment discipline requires tuning out the constant noise and focusing on long-term fundamentals.
10. Control what you can control
You can't control the market, but you CAN control your strategy, costs, and emotions!
Work with a trusted financial advisor who can help you stay focused on what truly matters—delivering clarity, confidence, and a better investment experience.
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