In a popular children’s story, the young hero pins all his hopes on finding one of a handful of ‘golden tickets’ hidden among millions of candy bars. It seems many people approach investing the same way.
The notion that the path to long-term wealth is in locating secret and previously undiscovered treasures in the global marketplace of securities is one that regularly features in media and market commentary.
Economic Overview
Once again, the investment strategy of maintaining discipline and holding for the long term won out over reacting to media forecasts and predictions from hyperventilating partisans. In January 2017 CNBC suggested Wall Street was the most bearish they’d been in 12 years, as it turned out, the global economy continued to strengthen as share markets posted solid returns on low volatility.
In 2007 Apple introduced the iPhone to the world and it revolutionised the way we communicate. Apple has continued to innovate and introduce new versions of the iPhone and other products over the last decade and currently is one of the largest companies in the world. Will Apple still be producing the number one smartphone in 2027?
‘Investors are bracing for another year of event-driven volatility on the Australian share market, against a backdrop of subdued growth and earnings’. That was the warning of a local newspaper as the 2016/17 financial year began. So how did that turn out?1