Market volatility and super: How to resist the itch to switch

In uncertain times, when markets are volatile, it’s easy to conclude that it’s time to move all your assets into the safe haven of cash or something tangible like property. For those nearing retirement, these kinds of concerns are heightened, as pre-retirees watch money earmarked for retirement income dwindle overnight.

In an environment of rising interest rates, uncertainty around inflation, and the war in Ukraine, keeping the faith and sticking to your investment strategy can seem harder than ever. Nevertheless, the core principles of investing remain and are critical at times like this. When it comes to investing, decisions made in response to fear are rarely the right ones and taking rash action can prove costly.

Lessons from history

The oft-quoted maxim when markets take a dive is, “It’s not about timing the market it’s about time in the market”. While that may seem trite – particularly if your superannuation balance has just been decimated – it’s helpful to take a look at history and how markets have recovered over time.