Investor Memory 

1st of November, 2018

I read an interesting article recently about Volkswagen.

Did you know that this German brand is ahead of all other non-luxury brands in relation to customer retention rates?

According to a recent Roy Morgan Automotive Currency Report, 61.5 per cent of Volkswagen owners said their next car purchase would again be a Volkswagen.

This is surprising especially when compared with the way “Real Ozzies” have ditched our iconic Holdens! Remember those ads “Football, Meat Pies, Kangaroos and Holden Cars!” Clearly times have changed in many ways however this commercial shows how entrenched the Holden was in Australia culture.

How is it that a European car company, that lied to us over the Dieselgate emissions scandal in September 2015, has retained this brand loyalty?

Now don’t think that I’m trying to start some sort of Australian v European trade war here – as a family we actually own a Volksie!

But it does make you think just how quickly we forget.

Or if we don’t actually forget, how quickly we change our perspective on matters.

It never ceases to astound me just how short investors memories can be. How is it that as investors we are so quickly sucked in to the “New Normal”.

Such a normal can be high levels of volatility, low returns, high interest rates.

Remember 9/11. How did you feel that morning when you saw the markets falling, metaphorically from a similar height from which those buildings were hit.

The world was stunned, in shock and fear yet did you know, from the September 24th 2001 market low, the Australian stock market rallied 21% in 141 days to again be at record all-time highs again.

Just think about that for a moment.

Think about the change in investor sentiment over that 141 days.

Think about how quickly Investor Sentiment and Memory changes.

Studying history, and I mean long-term history can really help you see market action and investor sentiment in context.

As investors, we MUST keep our emotions in check and we MUST take our investing opportunities as they present.

Right Now there is an opportunity staring you in the face.

But will you be distracted by the markets current “Dieselgate Scandal” or will you be emotionally strong enough to take the actions mandated by your investment strategy?…

Let’s get started

If you want to avoid the mistakes of not understanding the dangers of investing without an understanding of the Economic Cycle, then why not have a chat to us about how we can help?

You have nothing to lose except a few minutes of your time and everything to gain.

So… let’s get started.

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