Key things for investors to keep in mind

AMP’s Chief Economist and Head of Investment Strategy Shane Oliver said the past financial year provided several lessons for investors. 

“While we saw a long list of worries over the last year, 2025-26 saw another financial year of strong investment returns,” he said.

First, Trump still faces constraints from markets, consumers and republican politicians and so backed down (“TACOed”) on his Iran threats as his popularity collapsed, opting for a deal team that seems to have left Iran the winner. 

Second, markets have learned after numerous experiences that TACO is the norm and so now assume it will happen eventually. 

Third, the world seems to have become even less vulnerable to oil supply shocks (although a run down in reserves played a big role here). 

Fourth, unless real economic activity and profits fall investment markets will ultimately continue past a geopolitical shock. 

Finally, the last financial year was another reminder of just how hard it is to time markets. Shares plunged into March, only to bottom out and then for global shares to quickly make new record highs.

Nine key things for investors to keep in mind

Short term forecasting and investment market timing is fraught with difficulty and it’s best to stick to sound long term investment principles. 

“With recession looking unlikely, profits likely to keep rising and the Fed and RBA likely to be cutting rates in 2027, investment returns are likely to be reasonable over the year ahead but maybe a bit slower than those of the last four years,” said Oliver.

“The key for investors including super fund members is to maintain a long-term strategy and turn down the noise.”

Here are nine key things wise investors should keep in mind.

• Make the most of compound interest to grow wealth  
  Saving in growth assets can grow wealth significantly over long periods.
• Don’t get thrown off by the cycle  
  Falls in asset markets can throw investors off a well-considered strategy, impacting potential wealth.
• Invest for the long-term  
  Given the difficulty in timing market moves, it’s best to get a long-term plan that suits circumstances and stick to it.
• Diversify  
  Don’t put all your eggs in one basket.
• Turn down the noise  
  The key is to avoid the click bait, turn down the noise and stick to a long-term strategy.
• Buy low, sell high 
  The cheaper you buy an asset, the higher its prospective return will likely be and vice versa.
• Avoid the crowd at extremes  
  Don’t get sucked into euphoria or doom and gloom around an asset.
• There is no free lunch!  
  If an investment looks dodgy, hard to understand or has to be justified by odd valuations, then stay away. 
• Seek advice 
  Investing can get complicated.

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