The Power of Perspective

With another challenging day for investors following more talk around inflation numbers coming out of the US and the prospect of a worldwide recession.

While it is never easy to watch portfolio balances heading down instead of up, now it the time to ensure you are making investment decisions that are not based on emotions.

Some tips to help get you through this tough time:

  • Ensure you have an investment strategy in place, and are sticking to it
  • Make sure you have enough cash in your bank to avoid having to sell assets while values are down
  • Look at the current share market as an opportunity to build long-term wealth at a discounted rate (now is not the time to stop your regular investments)
  • Make sure your portfolio is highly diversified with quality investments
  • Look to the experts – reach out to your Financial Adviser or Fund Managers and see how they are reacting. Are they panicking and selling everything, or are they taking the opportunity to make good investment decisions while emotional investors add to market volatility?
  • Try to remember, investing is a long-term game, not a short-term adventure – look at the markets over the last 30 years – this downturn is nothing in the long run.

Need more reassurance? Check out some great resources below, such as Vanguard’s latest Index Chart, tracking major asset classes over the last 30 years, or their short video on the Power of Perspective.

Download Vanguard’s latest Index Chart

YouTube video


Vanguard Investments Australia Ltd (ABN 72 072 881 086 / AFS Licence 227263) is the product issuer and the Operator of Vanguard Personal Investor. We have not taken your or your clients’ objectives, financial situation or needs into account when preparing our website content so it may not be applicable to the particular situation you are considering. You should consider your objectives, financial situation or needs, and the disclosure documents for the product before making any investment decision. Before you make any financial decision regarding the product, you should seek professional advice from a suitably qualified adviser. A copy of the Target Market Determinations (TMD) for Vanguard’s financial products can be obtained at free of charge, which includes a description of who the financial product is appropriate for. You should refer to the TMD of the product before making any investment decisions. You can access our Investor Directed Portfolio Service (IDPS) Guide, Product Disclosure Statements (PDS), Prospectus and TMD at or by calling 1300 655 101. Past performance information is given for illustrative purposes only and should not be relied upon as, and is not, an indication of future performance. This website was prepared in good faith and we accept no liability for any errors or omissions.

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