The Reserve Bank of Australia has recently indicated that this Wednesday’s September quarter consumer price index report will be a critical factor when its Board sits to decide on interest rates next Tuesday (Melbourne Cup day). What’s more, there is a reasonable chance that inflation will (again) surprise on the downside. Despite this risk, the market is placing only relatively small odds on a rate cut next week.
The Star Wars epic may be one of the greatest movie series ever created, but it can also offer us some lessons on how to manage our investment behaviour when the market is volatile. Yoda said it best when he told a young Anakin, “Patience you must have.”
For some investors, the recent market volatility has resulted in anxiety and concern. In this article, we’ve outlined some of the common pitfalls that lead to harmful investment decisions and explain that the most important variable in your investing success – and the only thing you can control – is your behaviour.