Match the Hatch: Finding the Right Investment Strategy for You
In fly fishing, “match the hatch” refers to selecting a lure that mimics the insects fish are feeding on. It’s a strategic, thoughtful approach. Success hinges on choosing the right fly for the conditions. For investors, the same principle applies: aligning your investment strategy with your unique risk tolerance and psychological make-up is key to success.
Investing isn’t a one-size-fits-all endeavour. Just as fish respond differently to various lures depending on their environment, investors react differently to market swings, volatility, and potential gains or losses. Some thrive with aggressive, high-growth strategies, while others prefer the steadiness of income-focused or low-volatility portfolios. Understanding your “hatch,” your personal preferences, financial goals, and emotional resilience—ensures you’re fishing in the right waters.
Choosing the wrong strategy can lead to frustration, anxiety, or even abandoning the plan altogether—just like using the wrong lure in a river full of selective fish. But when you match the hatch, you’re set up for consistent, rewarding results.
After 25 years of pursuing growth in our SMSF (retirement account), I made a conscious decision to move to a lower-growth, lower-volatility approach, namely the All-Weather portfolio. As we approach retirement, I don’t want to endure a deep or lengthy drawdown. I want steady, competitive growth without the downside. Rather than amend or adapt an existing growth strategy, making the shift to a properly built low-volatility approach ensured I was ‘matching the hatch’ to my wanted risk appetite and psychological needs.
Take time to reflect on your goals and temperament. Whether you’re drawn to growth, stability, or a mix of both, at The Chartist there’s a portfolio or portfolio combination designed for you. Remember, in both fishing and investing, success comes from preparation, patience, and choosing the right tools for the job.
