Look before you leap
When the head of Australias stock exchange urges investors to look before they leap, it is wise to take notice. In this case, ASX Managing Director, Mr Richard Humphry is calling investors to listen b
When the head of Australias stock exchange urges investors to look before they leap, it is wise to take notice. In this case, ASX Managing Director, Mr Richard Humphry is calling investors to listen before they leap into the stock market.
People need to understand what theyre doing so take advice somewhere along the track and make sure you understand things, says Humphry. Advice can range from analysts reports on companies performance and future prospects posted on Australian Web sites such as www.etrade.com.au, through to more specific suggestions from more expensive full-service stockbrokers. But its helpful to remember stockbrokers final recommendations will ultimately be one of three: buy sell or hold.
Financial advisers can place your investment goals, your time horizon, risk tolerance and overall financial position in context. If youre approaching retirement and need to preserve and not risk cash reserves, the stock market may be too volatile in the short term, or you may decide to invest in more staid market sectors. If youre young and have time on your hands, short term risk of high-tech or telecommunications shares may become dissipated over time.
The Financial Planning Association can offer names of accredited financial planners and offer some investment advice at its Web site on www.fpa.asn.au. The ASIC offers similar services on its Web site under the Dont kiss your money goodbye icon at www.asic.gov.au. More general investment advice is online at sites such as Lend Leases www.yourprosperity.com.au, which offers tutorials under the learning centre banner on investment in shares, property, fixed interest and managed funds, as well as a discussion on investment risk and how different investments respond to various economic conditions.
More complex lessons on approaches of managed fund directors is also on Lend Leases site.
This article appeared in the April, 2000 issue of PC Authority.
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