Dobbrick Financial Services

It pays to know the facts

DFSGympie — Fri, 10 Feb 2012 05:02:49 +0000

Comminsure, one of our insurance partners has done some interesting research on our industry and the people who benefit from our advice.

Emotional Investing – Has it peaked?

DFSGympie — Thu, 09 Feb 2012 01:29:23 +0000

I just listened to a fantastic conference call with the Chief Investment Officer from PM Capital, Paul Moore. He discussed the current pessimism in the markets and how the light is always darkest before dawn. This graph paints exactly that picture illustrating the correlation between the USD gold price and the Dow Jones equity returns. The risk is surely to the upside!

The global economy looking a little less scary » AMP Capital Video

DFSGympie — Wed, 08 Feb 2012 00:03:07 +0000

Dr. Shane Oliver, Head of Investment Strategy and Chief Economist AMP Capital, discusses the continued world economic recovery.

Magellan Global Update – February 2012

DFSGympie — Mon, 06 Feb 2012 05:21:51 +0000

In Hamish Douglass’ recent video, he gives his insights into:

- recent developements from Europe

- positive signs from the US; and

- China’s economy

Good advice

DFSGympie — Fri, 03 Feb 2012 00:13:29 +0000

Bit of a laugh!

Back to Basics – Value vs Growth

DFSGympie — Mon, 30 Jan 2012 06:22:04 +0000

Michael Fazzini, AMP Key Account Manager, discusses the differences between value and growth investment styles.

Innova Asset Management – What is a UMA?

DFSGympie — Mon, 30 Jan 2012 05:38:46 +0000

Never heard of a UMA (Unified Managed Account)? Not to worry, not many people have. The UMA is set to be the next big thing in investment administration, monitoring and professional investment management. The same way the Master Trust and Wrap account changed the investment landscape for retail clients 15 years ago, the next big shift is towards managed accounts, with the UMA being the most advanced and interesting version. Roughly $1 trillion of assets are being managed in the US via managed accounts, with the greatest growth being in UMAs. Previously only available to the most wealthy of investors, technological advancements and scale are making this tool available for the retail investor. More…

Smarter people own shares, study finds

DFSGympie — Thu, 19 Jan 2012 07:23:20 +0000

The smarter you are, the more stock you probably own, according to researchers who say they found a direct link between IQ and equity market participation.

Magellan Global Insights – November 2011

DFSGympie — Tue, 17 Jan 2012 01:24:43 +0000

Latest insights from Hamish Douglass, Portfolio Manager of the Magellan Global Fund

Smoother sailing on the investment high seas

DFSGympie — Mon, 16 Jan 2012 03:52:03 +0000

There is no doubt that 2011 was a tough year with many investors finding volatility in the sharemarkets challenging – the US debt debate, revolts in the Middle East, Greece’s near economic collapse, the European debt crisis, the threat of another recession in the US and fears of a Chinese slowdown all played a part in making the year a very bumpy ride.

So is 2012 a good year to invest? Choosing the best time to invest is notoriously difficult. Even the world’s best economists don’t always know when markets are heading up or down.

But according to Paul Dobbrick from Dobbrick Financial Services there is a way to safeguard yourself from investing your money at the worst possible time – it’s called dollar cost averaging.

“Dollar cost averaging is a simple strategy with a lot of power,” says Paul. “Basically, all you have to do is invest a set amount of money at regular intervals, for example $100 at the start of each month.”

“This takes the stress out of trying to time the market by smoothing out your investment over time.”

So while one month you may buy $100 worth of shares at $10 each, the next month the price could be $9.50, and the next month $9. This means you mitigate the risk of buying all your shares at an inopportune time.

“With this strategy you can quit worrying about investment prices day-to-day and chopping and changing your plan based on investment tips from neighbours and taxi drivers” says Paul.

“And the best part of it is that you’ll buy more shares when prices are low and fewer when prices are high,” says Paul.

“While this may sound like a simple, almost intuitive concept, when left to their own devices most investors have the bad habit of buying more shares when prices are high, and less when prices are low.”

“This is human nature. When markets are booming and investors are happy, everyone wants a piece of the action. But when markets are falling, people panic and tend to want to put their money somewhere ‘safe’ while markets recover,” explains Paul.

“Unfortunately human nature means many investors miss out on the opportunity to buy shares when they are effectively on sale, and even worse miss out on the big gains that can be made when markets recover.”

“Dollar cost averaging cuts out the emotional element to investing – replacing irrational spur of the moment decisions with a thoughtful long-term investment plan that will see you building wealth consistently over time.”

With market volatility high and so much noise in the press about the state of the economy, now is the perfect time to take the emotional elements out of investing and get your investment plans back on track – whether that’s setting yourself up for your ideal retirement or lifestyle goals such as buying a new house.

For more information about dollar cost averaging or an obligation free appointment, call our Gympie office on 07 5482 7828 or our Ipswich office on 07 3281 1300 today.

Dobbrick Financial Services is a member of Fortnum Financial Advisers and an Authorised Representative of RI Advice Group Pty Limited (ABN 23 001 774 125), Australian Financial Services Licence 238429. This editorial does not consider your personal circumstances and is general advice only. You should not act on the information provided without first obtaining professional financial advice specific to your circumstances.