Page 26 - Tropic Magazine Issue 13

INDUSTRY • ADVICE

Healthy returns

Minimising the stress of
investing with Danny Maher
and the team at Fiducia Private to be any correlation between better
Wealth Management. health and extreme market increases as
there was no corresponding decrease in
Losing money is no joke. Witness all hospital admissions when the market
those forlorn investors who regularly raged upwards. Somewhat confirming
appear on A Current Affair, 7:30 and the loss aversion theory, where an
4 Corners, recounting how they were investor feels a loss more acutely than
trying to secure their future before some the pleasure of a gain. Significantly, the
financial disaster befell them. Whatever hospitalisation rate was most linked with Unlikely partnership
the cause (and we’ve discussed plenty mental health conditions such as anxiety.
of them) inevitably the discussion will The authors admit that they don’t know What does an Audi TT, a cane
turn away from their financial pitfall if any of those people admitted to the train operated by MSF Sugar and
and towards their physical and mental hospital actually owned stocks, but the Targa Great Barrier Reef race
wellbeing in the aftermath. there was no other correlation with have in common? The answer,
Never do any of these investors report admissions that was so consistent obviously, is safety. To highlight
their physical and mental wellbeing as the downward movement of stock a new partnership forged during
becoming better through the stress prices. Co-author, Parsons says the preparations for the Targa race
of financial loss. They don’t become genesis of the study partly came from ahead of its August 31 start, MSF
happier. They don’t become stronger. noticing his own father’s behaviour: Sugar organised a demonstration
They’re weakened by the experience “The first thing my dad does every of an Audi TT versus a 40-tonne
and fearful for the future because of morning, after he’s made his coffee, is loco. Because, why not?
diminished circumstances. follow the market for three hours. If “As sections of the course will
A study by University of California it’s doing well, he’ll be in a good mood. navigate through our cane rail
San Diego finance professors Joseph If it’s not, he gets very nervous. He’ll network during peak harvesting
Engelberg and Christopher Parsons call me to ask what I think he should period, we are working with Targa
delves a little deeper into this link do.” His father rarely responds by then Australia to ensure we deliver a
between finances and health. Titled making investment decisions, but it safe crushing season as well as a
‘Worrying About The Stock Market: affects his mood and what he’ll choose safe event,” MSF Sugar CEO Mike
Evidence From Hospital Admissions’, to do for the rest of the day. Which Barry said.
the authors focused on how stock seems quite unhealthy itself. As Community Engagement
market movements influence investor The best way to minimise this and Partners, MSF Sugar will work
psychology. The pair used patient remove emotions from clouding with Targa Australia to educate
records from all hospitals in California decision-making is to understand visitors to the region about
from 1983 to 2011 and tracked them what we can and can’t control. In the the cane rail network and
against share market movements process hopefully eliminating stress communicate with employees
throughout the time period. One of and a potential hospital admission. and growers about the impacts
the most striking things to note was Asset allocation, diversification, fees, of the event on harvesting
the more than 5% spike in hospital risk assumed, behaviour? Yes. Market operations.
admissions on the day of the 1987 stock movements? No.
market crash. MORE: msfsugar.com.au
Across the three decades things were a MORE: fiducia.net.au
little less pronounced and smoothed out,
but the authors found generally when The above represents general information only.
stock prices fell 1.5%, admissions to Fiducia is part of a group of likeminded, privately owned financial advisory firms around Australia called the
California hospitals increased by 0.18% FYG Planners. The above article was produced by FYG and is reprinted here with their permission.
– 0.28%. However there didn’t seem

26 • Tropic • Issue 13