Investing in a Bubble / Julian McCormack
Note: This recording was done 2 weeks prior to the worldwide equity markets pulling back and before the full extent of what Covid-19 has now become, was even known.
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Julian McCormack from Platinum Asset Management joins me in this deep dive to talk bubbles and active investing, all with a good dose of economic history.
Today's episode requires a clear mind before you start listening - we often try to drop a few life-lines to explain things for those of us who are still learning, but this time you may need to pause, consult Mr Google, and continue listening. Don't let any of the jargon put you off here - this is a must listen!
Some questions we're exploring today:
Are we in a bubble?
What would it take to 'prick ' this bubble?
Some key 'take-aways'?
- Why should we all invest? Well, we all have a 'right' to partake in the fruits of capitalism. Sometimes you have to fight for your right (not just to party) but to invest - just because it may seem hard, doesn't mean you shouldn't do it.
- Passive vs active isn't a debate we should have, it's merely two different investment styles we should all be approaching. 'Owning' a slice of the market is fine, but having at least some allocation towards active management seems like a sensible thing to do when the future is as uncertain as it is currently...right?
- The average return is a lie.
- Economics - the physics of humanity.
- Economic shocks and 'bubble avoidance' isn't actually a healthy mindset - often a market shock can be a good thing as an investor and not something to be fearful of...just prepared for.
- In any area of your life that you're trying to improve on, outside help is helpful. DIY passive investing could be a great strategy for your 'core', but even then, shouldn't you get some advice with that?
- Shut up and buy cheap stocks - could this be the most profound bits of investment advice you've ever heard?
If you want to learn more about the types of funds that Platinum offer, please consult an authorised financial adviser.
Hope you've enjoyed this episode - if you have please write a review on your favourite podcast player and share this episode on your various facebook groups!
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Where to find Darcy Ungaro:
Ungaro &Co (authorised) financial advisers
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