9th February 2023
MPF has just recorded is best ever start to a calendar year ever, with average MPF investment returns up over 6% in January and average account balances growing by more than $15,000.
In my experience people are tempted to make rash and impulsive decisions, such as, selling in falling markets to cut losses or doubling down in rising markets, confident markets will continue to go up, when major market moves happen but here’s a story which maybe worth pondering.
While the rest of the planet combined to win 3 gold medals at the 2012 London Olympic Games, Great Britain’s track cycling team won 8. An unbelievable result, testimony to what humans can do through hard work, until you realize the success didn’t just come through hard work. Drugs had found their way into the team, but thankfully not in the way most would imagine. The cyclists realised that rubbing alcohol on tyres before each race would reduce friction, allowing their wheels to spin quicker. Their legs needed to stay warm between races so they wore electrically heated hot pants, and even pre-COVID, their doctors directed the cyclists to use hand sanitizer to minimise the chance of illness spread by other competitors.
To achieve Gold, British cyclists didn’t make rash or impulsive decisions. Rather they made small thoughtful changes which at the time may have seemed inconsequential, but are now seen as producing an incredible result. Investing for your financial future is no different. Forget rash and impulsive decisions. Focus on small thoughtful decisions which added up over the long term will help achieve you financial gold medal.
Click here to find out which constituent funds deliver the best fund performance in 20 years, 15 years, 10 years, 5 years and 1 year within their respective fund categories.
