Has the market reached the bottom? It’s a question some investors are asking at the moment. JUNO Founder + CEO Mike Taylor explains.
Trying to time the market can be very difficult. That’s why investment managers refer to the phrase, “it’s about time in the market, not timing the market.” It’s very difficult to determine when the market has reached the bottom. In all the market turns I've seen over the years, no one rings a bell. It's very, very hard even for the investment team at JUNO to determine exactly when the market’s going to bottom out. Usually, it's the time when you feel the worst, when you really feel like, ‘This is terrible, I need to just sell everything and crawl underneath the couch’.
It's key to always have in the back of your mind that markets recover. But despite this, you still might be feeling anxious or worried in the short term seeing your investments drop and lose value. That’s a normal feeling, nobody likes seeing their balance drop, and many of our staff are invested in the same funds as you, including me. The year ahead probably has more volatility in store. The world is going through some big events (the war, oil prices, inflation etc) which are impacting a lot of people, and markets can take time to recover.
If you own investments outside your KiwiSaver account, say direct shares or managed funds, you might be wondering if you should pull your money out and reinvest at a better time. What I would say is that that's a very difficult proposition. I've heard people try to do it over the years, and it's for that reason that we don't take our funds to 100% cash, which means none of the money is invested.
The future is uncertain and sometimes there are times where things look really dark, then something unpredictable will happen. The price of petrol is a good one. Maybe you were worrying about the increasing cost of petrol, and feeling really worried about it. Then, the government cut the tax on petrol. No one would have predicted that a few weeks ago. The world has been through a lot worse than what we're currently experiencing and it's always gone on to bigger and better things.
You’ve entrusted your KiwiSaver money with JUNO, let us do the worrying. Try to relax and don’t look at your balance every day, that's not really going to help. We've been through a number of these events in the past. Pie Funds, which manages JUNO, has been going for 15 years. I personally have been investing money for 15-20 years. And it’s really in situations like this where we bring all hands to the pump at JUNO to help manage your investments.
Information correct as at March 2022. Pie Funds Management Limited is the issuer and manager of the JUNO KiwiSaver Scheme. Click here for our Product Disclosure Statement. Any advice is given by Pie Funds Management Limited, and is general only. It relates only to the specific financial products mentioned and does not account for personal circumstances or financial goals. Please see a financial adviser for tailored advice. You may have to pay product or other fees if you act on any advice. As manager of the Scheme we receive monthly fees that are determined by your balance and whether you are 13 years or over. We will benefit financially if you invest in our products. We manage any conflicts of interest via an internal compliance framework designed to ensure we meet our duties to you. For information about the advice we can provide, our duties and complaint process and how disputes can be resolved, visit www.junofunds.co.nz. All content is correct at time of publication date, unless otherwise indicated. Past performance is not a reliable indicator of future returns. Returns can be negative as well as positive and returns over different periods may vary. Please let us know if you would like a hard copy of this disclosure information.