Key points
– Successful investing can be very difficult in times like the present with immense uncertainty around inflation, interest rates, war in Ukraine & continuing covid waves.
– This makes it all the more important to stay focused on the basic principles of successful investing.
– These five great charts help illuminate key aspects of investing: the power of compound interest; the investment cycle; the roller coaster of investor emotion; the wall of worry; and time is on your side.
Introduction
Investing is often seen as complicated. This has been made worse over the years by: the increasing complexity in terms of investment products and choices; regulations and rules around investing; the role of the information revolution and social media in amplifying the noise around investment markets; and the expanding ways available to access and transact in various investments. But at its core, the basic principles of successful investing are simple & timeless. One way to demonstrate that is in charts or pictures. So, this note updates five charts I find useful in understanding investing. Of course, there are more than five, so I’ll put out part 2 in a few weeks. These charts are useful in times like the present where the noise has reached fever pitch with the pandemic, rising inflation, rising interest rates & war in Ukraine making the short-term outlook uncertain.
five-great-charts-on-investing-that-are-particularly-useful-in-times-of-uncertainty-like-the-present
