Back in our 36 per cent land, the rugby has stolen some of the attention away from local markets, and this combination of reduced liquidity and already super-cheap companies means it's time to dust off the cash pile.
Accumulating and adding to portfolios at close to major low points in the market, (now), will set them up for years.
Let's get one thing clear - it is not necessary or possible to time the absolute bottom of the trough. Just as it is equally unlikely that you will succeed trying to game the apex of the sharemarket.
The reason is clear in both respects - by the time things correct, (in either direction), you've already missed the first 15 or 20 per cent.
The best idea, and I have history to back me up here, is to use a consistent strategy throughout your years of investing.
It's precisely like starting a life-long health and exercise transformation.
You must be consistent and you must base your decisions on fundamental principles that have worked for others.
Your plan will be for a minimum of five years. (Did you know that it is physiological fact you can only add about 3 kilos of muscle per year at the very most, even with ideal diet and training?) Your expectations must match your means and they must be deeply realistic, or you will give up and not continue with your plan.
You need to break the big stratagem up into small and achievable pieces to keep disillusionment from your door.
There will be small stumbling blocks along the way, but you acknowledge this will be the case, and it shall not derail your overall objective, because it is for the long term.
The reason for mentioning the Happy Index brings up the last point - the crux of your success in either field will be a positive mental attitude.
Success can be defined in many ways, but my favourite description uses it as a verb; "Doing the things that others don't like to do".
As you might have guessed it's a contrarian type of idea involving investing into the markets at all time low and discounted valuations.
But, boy if you can get this idea nailed, you'll be laughing all the way. To the happy-bank.
Caroline Ritchie is an Authorised Financial Adviser with Forsyth Barr in Napier. She can be contacted on 0800 367 227 or caroline.ritchie@forsythbarr.co.nz.
Her Disclosure Statement is available on request and free of charge. This column is general in nature and should not be regarded as personalised investment advice.
