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To invest, or to hold? That is the question | TICKER VIEWS

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So with the markets running HOT particularly on Wall Street and the ASX, it brings up the age-old investing question:

Should I get in the market or should I get out?

Market Strategist Daniel Weiner has some pretty handy numbers for any investor who has stayed in the market over the last 13 years.

“Look at the S&P 500, since the GFC (Global Financial Crisis) there’s been almost 300 record highs, that’s almost one a week.

So if you’re invested for that whole period you’ve basically got that probability that every so often, granted there’ll be a few in a row, we are going to experience a new record high” according to Weiner.

Investors are highly aware of the emotion that comes with watching your money grow and fall.

But if you can remain calm for long enough, Weiner says there’s one key to returns.

“It just comes down to the length of time you’re willing to invest in the market.” 

300 record highs over that time, almost one a WEEK. Looks pretty good on paper. Obviously you have to manage the bumps along the way but goodness me.

Okay, so let’s expand our time horizon. Let’s work across a 30-year time frame of being invested in the market.

“Over a 30-year window if you were to invest at any random point in time in the S&P 500, versus the particular point in time where it’s a new record high…your 3 and 5 year returns and your 1 year returns will actually be higher investing at the point in time of a new record high” Weiner added.

Now that is surprising. Your returns, on average, are higher if you invested at the point of a record high. And just stay in the market.

So why would this happen?

Weiner points to a trend “so it might be counterintuitive for some people to see this.

But it could come down to a fact that record highs tend to beget record highs, because we tend to be in a bull run” 

So none of this is investing advice, each to their own, we’re all different people.

But these numbers suggest that “time in the market beats timing the market…”

I didn’t come up with that, but it might be a handy way to reduce the stress.

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U.S. retailers limit emergency contraception purchases

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Demand for morning after pills have led to retailers having to limit purchases

Amazon has limited sales of morning after pills as demand spikes following the U.S. Supreme Court ruling overturning Roe v. Wade.

There is now a limit of three Plan B units per week on emergency contraceptive pills sold through its website.

Other U.S. retailers are also capping purchases of emergency contraceptive pills like chain pharmacy, CVS and Walmart.

Plan B is an emergency contraceptive that can be taken within 72 hours after sex. It is a synthetic form of the hormone progestin which delays ovulation briefly and prevents pregnancy.

Demand has surged following last week’s U.S. Supreme Court ruling overturning Roe vs Wade, ending the constitutional right to have an abortion.

Since the reversal of Roe v Wade, women have tried to find ways to control their reproductive health, by stocking up on emergency contraception.

Social media is flooding with calls to stock up on Plan B in anticipation of possible restrictions on contraceptive pills.

Meanwhile, some US companies have committed to paying staff travel expenses for those wanting an abortion.

Katerina Kostakos contributed to this article.

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Chinese investment in Australia drops

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China’s investment in Australia has plunged to its lowest levels since 2007

A new report from KPMG and the University of Sydney shows Chinese companies invested U.S. $585 million in Australia last year, which is down from a peak of U.S $16.2 billion in 2008.

It comes as relations between the two nations remain sour. Australia has previously called for an independent review into the origins of Covid-19, and a ban on foreign interference.

But Chinese officials have responded with trade sanctions, which have affected Australian wine, seafood and coal exports.

Australia was once a large destination for Chinese investment. In fact, the two nations signed an historic Free Trade Agreement in 2015, with a key focus on economic growth and creating jobs.

Australia’s Prime Minister, Anthony Albanese says he will not make concessions to China. The newly-elected Albanese is in Europe for a series of talks with NATO leaders.

“The resistance of Ukraine has brought democratic nations closer together which have a shared commitment to rules-based, international order,” he says.

But Chinese officials believe it is irresponsible to place Ukraine and Taiwan in the same basket.

Chinese Foreign Ministry spokesman Zhao Lijian says “Taiwan is by no means Ukraine,” and labelled Albanese’s comments as “irresponsible”.

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Target offers support to employees seeking abortions

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Target will help its employees living in states where abortions are banned by funding their travel

The company sent a memo to employees via email with the new policy to be enacted in July.

Target’s Chief Human Resources Officer says “A few months ago, we started re-evaluating our benefits with the goal of understanding what it would look like if we broadened the travel reimbursement to any care that’s needed and covered – but not available in the team member’s community”.

She says “This effort became even more relevant as [Target] learned about the Supreme Court’s ruling on abortion, given that it would impact access to healthcare in some states”.

This all comes amid the reversal of Roe versus Wade removing abortion as a constitutional right within the U.S.

This has sparked a range of companies to provide similar benefits with Amazon also providing travel coverage for employees.

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