Investing for stability in uncertain times

The current uncertainty can be unsettling for investors, says Shelby Clark, executive director at GPS Investments, but we can learn a lot from the past.

There's no arguing that right now, we are facing uncertain times.

Investors don't like it, and nor do investment markets.

However, we only have to look at recent history to see how investors can navigate a path to bring stability to their portfolio - and their wealth.

Learnings from the COVID pandemic that apply today

It's been six years since the start of the COVID pandemic. At the time, it was an incredibly destabilising event that saw sharemarkets tank, and sent consumers panic-buying.

Sound familiar?

Of course, the underlying cause of instability was very different from today.

Even so, we can take three valuable lessons from the pandemic, and apply these to invest for stability in today's uncertain times:

1. Don't ignore your investments

Back in 2020, we saw plenty of people who were so worried by the situation that they overlooked their investments.

That's a mistake. Yes, there is a lot to unpack right now, and it can all seem overwhelming.

But your money matters. Keep an eye on your investments, and be mindful of how they could be impacted by current events.

2. Investors tend to focus on homegrown assets

When global issues arise, investors tend to bring things closer to home. We saw this during the pandemic when investors typically focused on homegrown investments while shunning overseas asset markets.

The good news is that Australia is a well-regulated market with plenty of quality investment opportunities.

3. Investors look for flexibility

When surrounded by uncertainty, investors seek the reassurance of being able to access their money sooner. They don't want to be locked in for the long term or face rigid terms.

This trend drove GPS Investments to launch our Arkus Fund, which has been an instant hit with Aussie investors. By offering slightly lower returns, we are able to give investors the reassurance of increased access to their money - this resonated with Australians during the pandemic, and continues to do so today.

We're seeing a flight to safety

The feedback we are getting from investors right now is that they want to keep their money working hard.

At the same time they are concerned about investing in listed companies that may have a connection to the oil industry, or which could be impacted by conflict in the Middle East.

Overarching these concerns, no one knows if the current conflict could last for days, weeks, or even months.

The uncertainty is seeing Australians embrace investments that don't demand large chunks of capital. This has driven a fresh wave of interest in the Arkus Fund.

Investors can get started in Arkus as little as $1, and make regular transfers into the fund - so you're still actively investing. Distributions are paid monthly (extra income to help cover rising fuel bills), and Arkus still offers the freedom to make monthly withdrawals, so you're not locked in.

Better still, the Arkus Fund has that reassuring homegrown element.  The underlying asset is first registered mortgages over residential townhouse and apartment developments within a 2-hour drive of Brisbane - a growth corridor that KPMG says is outpacing the rest of Australia for population growth.

Time to invest in experience

One thing is for sure.

Now is the time to focus on investment providers with experience spanning past uncertainty.

With our 30-year track record, GPS Investments has been through it all - from the Asian financial crisis of the late 90s and the Dot Com bubble of 2000, through to the Global Financial Crisis of 2008-09, the COVID pandemic of 2020 and of course, today's Middle East crisis

Let me stress, none of us is enjoying the current instability. As human beings, the GPS team shares the same concerns as all Australians.

But as investment professionals we have been through this before, and we have the experience to know the path forward.

Take a fresh look at your investments, be mindful of being able to access your money if it's needed, and look for an investment provider that has stood the test of time.

Tick these boxes, and you can be confident of bringing stability to your portfolio even in these uncertain times.

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