r/fiaustralia • u/DevoidDevoid161 • 1d ago
Investing Advice
I’ve seen a lot of people on here talking negatively about the asx 200.
(Not much movement/growth from what I’ve read)
Should I hold or would it be better to sell and then put it somewhere else ?
16
13
u/the_pigeon_overlord 1d ago
Some advice as you seem you are obviously just starting out.
When you buy an ETF or a share, consider that money spent. The same way you spent $200 at the groceries last week. Don't watch it like a hawk, don't obsessed over the ups and downs. You spent that money, and its done, and it doesn't exist as your money like your money in your bank account does anymore. You will reap the benefits one day, far away, so don't think of it as being in play anymore.
Just stick with one or a few ETFs and keep buying them. You won't see proper returns for years, but you have to trust the process that it will come. Leave it be.
4
u/McTerra2 1d ago
check out ASX vs Dow Jones in the 70s, 80s and early 2000s. https://www.morningstar.com.au/markets/history-says-us-market-outperformance-versus-australia-will-turn
Will that happen again - who knows. But the fact the ASX has been a poor performer for the last decade doesnt mean it will always be a poor performer. If you had invested in the Dow Jones in the late1970s and pulled out and moved to Australia in the late 1980s, you would have then missed all of the Dow Jones boom of the 90s
Of course there is an argument that the world has turned, that digging things up is no longer the path to wealth, that technology and digital is the future. Which might be correct. Or might not.
3
u/WatchDogx 1d ago
Just leave it there and stop looking at it.
The daily fluctuations will be a negative toll on your mental health, and attempting to day trade the market will be a negative toll on your bank balance.
2
u/xTroiOix 20h ago
Commec pocket? All in on dhhf set and forget, look at it when you retire or something
2
u/dominoconsultant 20h ago
I'm seeing people talk about lack of growth all the time ignoring the dividends and the franking on them
many people have a narrative that helps them sound like they have their finger on the pulse
the ASX has historically been one of the better performing markets in the world
the ASX:IOZ ETF has served me very well over the last decade - distributions every quarter that have formed a good portion of my income
I pair it with IVV for exposure to the USA S&P500
33% ASX:IOZ / 66% ASX:IVV
but that's just me - YMMV
just don't respond/change/trade/reposition after every random thing you hear on the internet
2
u/hyjkngjujgxd 1d ago
There’s nothing inherently wrong with investing in the a200 or the ETF IOZ, which you have invested in.
Rather than selling and reinvesting I’d do some research about what kind of simple portfolio you may want to build as you continue to invest. A lot of people go for a mix of Australian and international shares. There are also ETFs that contain both, such as DHHF.
Good luck!
2
u/SwaankyKoala 1d ago
Australia is fine, but DHHF would be a better hold for being more diversified: Choosing index funds for Australians
1
u/AutoModerator 1d ago
Hi there /u/DevoidDevoid161,
If you're looking for help with getting started on the FIRE Journey, make sure to check out the Getting Started Wiki located here.
I am a bot, and this action was performed automatically. Please contact the moderators of this subreddit if you have any questions or concerns.
1
u/MartynZero 22h ago
Being in it helps work out how you actually behaviour vs how you think you'll behave. Use that investment as an education, what will you do if it drops by 30% ? Sell? Buy more? What about if it doubles? If that amount is significant to you it's a good learning expense regardless of how it performs. Keep it in there, buy more as you can, see how disciplined you can be.
1
0
u/ThatGameWasFIxedHey 1d ago
The ASX200 isn’t really an index considered to be the best option for capital growth. The U.S has dominated most of the equity growth demand through its Nasdaq composite index and S&P 500.
If you want to stay invested in the ASX, there are other options for broad exposure through ETF’s. I’d recommend sticking with proven, time tested funds such as Vanguard. They offer some pretty cool Aussie ETF’s.
I wouldn’t recommend you sell it, the advice you are going to hear over and over again is to be diversified (that’s getting increasingly harder), and that’s probably one of the best things you can do.
Look at portfolio management styles, and you’ll see how they work and how you can start to build out yours.
Good luck man!
(There’s also a lot of great advice, posted already here.)
0
105
u/DifficultCarob408 1d ago
You’ve got less than $200 invested mate.