‘Hard to get the timing right’: Super funds urge members to seek advice

InvestorDaily

There has been a slowdown in the volatility of investment markets following US President Donald Trump’s decision to pause the higher rate of tariffs on every trading partner outside of China, but there’s no telling how long that could last. Every morning there is a chance of waking up to news of a Trump announcement that will shake things one way or another. When it comes to superannuation, members need to be cautious they aren’t making short-term moves at the detriment of long-term returns, with UniSuper chief investment officer (CIO) John Pearce warning switching often comes “at the wrong time”.

“What we’ve seen time and again through history during a crisis is that members tend to switch at the wrong time. It’s very hard to get this timing right,” Pearce said. “Indeed, many members do actually switch out of risky assets at the right time but then they stay in defensive assets, and they don’t get that bounceback. We know that markets, time and again, they do bounce back, and they can bounce back very sharply.

The rest of this article can be found at ifa.com.au.