Thorn bushes have roses
An article from Vector Insights by Brad Livingstone-Foggo, Head of Marketing - Australia, VanEck. He highlights the importance of understanding loss aversion and staying focused on long-term goals, despite short-term market fluctuations and psychological biases. Recent share market volatility and the threat of higher interest rates have scared investors afraid of losing money. These are thorns. Look for roses because loss aversion can be overcome. The lead-up to this past week’s RBA interest rate announcement and the week’s market volatility echoed two sentiments about investing we couldn’t overlook. Firstly, Morgan Housel, the author of The Psychology of Money, has said, “Volatility is the price of admission. The prize inside are superior long-term returns. You have to pay the price to get the returns.” And the second, from French novelist Jean-Baptiste Alphonse Karr, “We can complain because rose bushes have thorns, or rejoice because thorn bushes have roses." Volatility and price moves go hand in hand with investing. They may cause short-term [...]
