TALKING FINANCE with Michelle Higgerson of Baiocchi Griffin Private Wealth THE INVESTMENT JOURNEY; ONE TURN AT A TIME I recently enjoyed a weekend in Sydney with two friends. Beyond the shopping, good food and many laughs, another highlight was a smooth entry into and navigation around the busy streets of Sydney. Probably because I wasn't the one driving. So unbelievably unproblematic was this trip, that without a case of road rage or a ferocious argument breaking out between the driver and the navigator, it almost felt like we had left something, or someone behind in Tamworth. Whether you're of the Google Maps era, or from the Navman, UBD or Gregorys worlds, it seems you can't consider it a trip to the city without a wrong turn being taken somewhere, a big sigh of frustration, and an inevitable delay in your arrival time. If you were exceptionally luckless, you'd repeat this same cycle many times over. To diffuse the heat between a frustrated driver and frustrated navigator, the statement that panicking doesn't help the situation often comes out, and this is very true. Often in times of high emotional stress, we panic and make the wrong decision, and the results can be annoying at best, or disastrous at worst. As for drivers navigating busy city traffic, it is equally important for investors not to panic in a period of high stress as emotional reactions usually lead to poor financial decisions, which again can range from annoying to disastrous. Markets do not move in a straight upward line, rather they naturally move through cycles of ups and downs, and the sudden drops often trigger fear. When you panic in these moments, a knee-jerk reaction to sell can mean selling your investments at a loss, permanently locking in what would be a short-term decline in value, and removing your opportunity to benefit from future recoveries (which historically, have always occurred). Panic also clouds judgment, making it harder to evaluate situations objectively. Instead of reacting impulsively, investors should rely on a well-thought-out strategy based on research, diversification, commitment to a long-term horizon and personal financial goals. Maintaining discipline during volatile periods also allows you to take advantage of opportunitiessuch as buying quality assets at lower prices-rather than making fear-driven mistakes. By staying calm, you give yourself the chance to benefit from market recoveries and compound growth. Patience, perspective, and rational thinking are the keys to long-term success whether that be when investing or enjoying a weekend in Sydney with friends. BAIOCCHI GRIFFIN PRIVATE WEALTH Level 1, 462-464 Peel St, Tamworth NSW 2340 6766 9000 AFSL No 424658 This article is general in nature and does not take your individual situation into account. You are advised not to act on anything contained herein, or discussed as a consequence of the contents of this document, without receiving financial advice from a suitably qualified person such as a financial planner, lawyer or accountant. Follow us on Twitter @BaiocchiGriffin Find us on Facebook facebook.com/Baiocchi Griffin Private Wealth www.bgprivatewealth.com.au 3142 TALKING FINANCE with Michelle Higgerson of Baiocchi Griffin Private Wealth THE INVESTMENT JOURNEY ; ONE TURN AT A TIME I recently enjoyed a weekend in Sydney with two friends . Beyond the shopping , good food and many laughs , another highlight was a smooth entry into and navigation around the busy streets of Sydney . Probably because I wasn't the one driving . So unbelievably unproblematic was this trip , that without a case of road rage or a ferocious argument breaking out between the driver and the navigator , it almost felt like we had left something , or someone behind in Tamworth . Whether you're of the Google Maps era , or from the Navman , UBD or Gregorys worlds , it seems you can't consider it a trip to the city without a wrong turn being taken somewhere , a big sigh of frustration , and an inevitable delay in your arrival time . If you were exceptionally luckless , you'd repeat this same cycle many times over . To diffuse the heat between a frustrated driver and frustrated navigator , the statement that panicking doesn't help the situation often comes out , and this is very true . Often in times of high emotional stress , we panic and make the wrong decision , and the results can be annoying at best , or disastrous at worst . As for drivers navigating busy city traffic , it is equally important for investors not to panic in a period of high stress as emotional reactions usually lead to poor financial decisions , which again can range from annoying to disastrous . Markets do not move in a straight upward line , rather they naturally move through cycles of ups and downs , and the sudden drops often trigger fear . When you panic in these moments , a knee - jerk reaction to sell can mean selling your investments at a loss , permanently locking in what would be a short - term decline in value , and removing your opportunity to benefit from future recoveries ( which historically , have always occurred ) . Panic also clouds judgment , making it harder to evaluate situations objectively . Instead of reacting impulsively , investors should rely on a well - thought - out strategy based on research , diversification , commitment to a long - term horizon and personal financial goals . Maintaining discipline during volatile periods also allows you to take advantage of opportunities such as buying quality assets at lower prices - rather than making fear - driven mistakes . By staying calm , you give yourself the chance to benefit from market recoveries and compound growth . Patience , perspective , and rational thinking are the keys to long - term success whether that be when investing or enjoying a weekend in Sydney with friends . BAIOCCHI GRIFFIN PRIVATE WEALTH Level 1 , 462-464 Peel St , Tamworth NSW 2340 6766 9000 AFSL No 424658 This article is general in nature and does not take your individual situation into account . You are advised not to act on anything contained herein , or discussed as a consequence of the contents of this document , without receiving financial advice from a suitably qualified person such as a financial planner , lawyer or accountant . Follow us on Twitter @BaiocchiGriffin Find us on Facebook facebook.com/Baiocchi Griffin Private Wealth www.bgprivatewealth.com.au 3142