1 00:00:03,290 --> 00:00:05,860 Sean Aylmer: Welcome to the Fear and Greed daily interview. I'm Sean 2 00:00:05,870 --> 00:00:08,740 Sean Aylmer: Aylmer. The last year hasn't just seen a surge in 3 00:00:08,740 --> 00:00:10,660 Sean Aylmer: the number of new traders getting involved in the share 4 00:00:10,660 --> 00:00:13,880 Sean Aylmer: market, it's also seen a boom in the popularity of 5 00:00:13,910 --> 00:00:17,590 Sean Aylmer: ETFs or Exchange Traded Funds, a fund that invests in 6 00:00:17,590 --> 00:00:20,210 Sean Aylmer: a range of stocks, for example, across a particular sector. 7 00:00:20,570 --> 00:00:23,890 Sean Aylmer: We've spoken about ETFs before with Chris Brycki, the CEO 8 00:00:23,890 --> 00:00:27,950 Sean Aylmer: of online investment advisor, Stockspot. Stockspot has now released research 9 00:00:27,950 --> 00:00:31,220 Sean Aylmer: into the most popular ETFs of the last year and 10 00:00:31,220 --> 00:00:34,510 Sean Aylmer: which ones have delivered the best and worst returns. Chris 11 00:00:34,530 --> 00:00:36,100 Sean Aylmer: Brycki, welcome back to Fear and Greed. 12 00:00:36,479 --> 00:00:37,129 Chris Brycki: Thanks Sean. 13 00:00:37,380 --> 00:00:40,170 Sean Aylmer: So let's get straight into it, Chris. What was the 14 00:00:40,170 --> 00:00:41,510 Sean Aylmer: ETF that performed best? 15 00:00:41,930 --> 00:00:45,129 Chris Brycki: Well, over the last 12 months, the best performing ETF 16 00:00:45,130 --> 00:00:48,840 Chris Brycki: was an ETF with the code ACDC which was a- 17 00:00:48,850 --> 00:00:49,111 Sean Aylmer: Oh, fantastic. 18 00:00:49,111 --> 00:00:52,440 Chris Brycki: ... a battery focused ETF, actually. So it was a 19 00:00:52,440 --> 00:00:55,550 Chris Brycki: thematic ETF, which are a group of ETFs that focus 20 00:00:55,550 --> 00:00:57,120 Chris Brycki: on quite niche themes. 21 00:00:57,230 --> 00:00:57,500 Sean Aylmer: Right. 22 00:00:57,600 --> 00:01:01,100 Chris Brycki: And invested mainly in companies related to lithium and the 23 00:01:01,100 --> 00:01:04,440 Chris Brycki: making of electric vehicles and batteries for those vehicles. So 24 00:01:04,810 --> 00:01:08,490 Chris Brycki: within that ETF for companies like Tesla and Nissan and 25 00:01:08,490 --> 00:01:11,220 Chris Brycki: a few lithium miners in Australia like Pilbara Minerals. 26 00:01:11,530 --> 00:01:13,930 Sean Aylmer: Wow. I didn't even realize that there was an ETF that 27 00:01:13,930 --> 00:01:15,670 Sean Aylmer: you could focus so specifically on. 28 00:01:15,970 --> 00:01:17,800 Chris Brycki: It's a bit of a new thing. I mean, there's 29 00:01:17,800 --> 00:01:21,959 Chris Brycki: now over 200 ETFs in Australia from when I started Stockspot probably 30 00:01:21,959 --> 00:01:25,940 Chris Brycki: about 30. So like all of the big Vanilla Index 31 00:01:25,940 --> 00:01:28,560 Chris Brycki: ETFs have now been covered and so the ones that seem 32 00:01:28,560 --> 00:01:30,870 Chris Brycki: to come out nowadays are all these thematic ones that tend to 33 00:01:30,880 --> 00:01:33,270 Chris Brycki: have good marketing stories behind them and are a little 34 00:01:33,270 --> 00:01:35,789 Chris Brycki: interesting. Some do very well, like this one, some don't 35 00:01:35,790 --> 00:01:37,429 Chris Brycki: do as well, but yeah, they do get a lot 36 00:01:37,430 --> 00:01:38,500 Chris Brycki: of investor interest. 37 00:01:38,670 --> 00:01:41,520 Sean Aylmer: It's kind of an interesting concept because the thing about 38 00:01:41,650 --> 00:01:43,930 Sean Aylmer: ETFs that I've always thought was attractive, was that you're 39 00:01:43,930 --> 00:01:46,360 Sean Aylmer: sort of half right and half wrong. In many ways, 40 00:01:46,360 --> 00:01:48,810 Sean Aylmer: you are kind of spreading your risk, but these sorts 41 00:01:48,810 --> 00:01:50,780 Sean Aylmer: of ETFs are definitely very focused. 42 00:01:51,210 --> 00:01:53,150 Chris Brycki: Well that's right. I mean, I love the benefit of 43 00:01:53,150 --> 00:01:57,920 Chris Brycki: diversification that ETFs give you even within an ETF the ASX 301 44 00:01:57,920 --> 00:02:01,040 Chris Brycki: gives you 300 companies across different sectors of the economy, 45 00:02:01,040 --> 00:02:03,560 Chris Brycki: so if one sector does well and one does badly, 46 00:02:03,560 --> 00:02:06,070 Chris Brycki: they kind of counterbalance each other. Yeah, the problem with 47 00:02:06,070 --> 00:02:09,360 Chris Brycki: these niche ETFs is you can get it really right 48 00:02:09,410 --> 00:02:10,820 Chris Brycki: or really, really wrong. 49 00:02:11,139 --> 00:02:11,220 Sean Aylmer: Yeah. 50 00:02:11,490 --> 00:02:13,950 Chris Brycki: And it kind of tends to happen one year in, 51 00:02:13,950 --> 00:02:16,830 Chris Brycki: one year out. So actually last year's best performing ETF, 52 00:02:17,120 --> 00:02:19,910 Chris Brycki: which was I think a palladium ETF actually was one 53 00:02:19,910 --> 00:02:20,841 Chris Brycki: of the worst 10 this year. 54 00:02:20,841 --> 00:02:20,961 Sean Aylmer: Yeah. 55 00:02:21,150 --> 00:02:25,270 Chris Brycki: So it tends to flip from great to poor. You're more lucky 56 00:02:25,270 --> 00:02:27,250 Chris Brycki: than smart usually if you get it right. 57 00:02:27,570 --> 00:02:30,520 Sean Aylmer: So what are some of the other better performing ETFs this year? 58 00:02:30,919 --> 00:02:33,970 Chris Brycki: This year, I mean, obviously markets from the bottom of the 59 00:02:34,160 --> 00:02:37,080 Chris Brycki: COVID crash last year performed quite well, so a lot 60 00:02:37,080 --> 00:02:41,320 Chris Brycki: of the share market focused ETFs and technology ETFs particularly 61 00:02:41,320 --> 00:02:44,800 Chris Brycki: did well. So there were the FANG ETF, which focused 62 00:02:44,800 --> 00:02:49,350 Chris Brycki: on the big US technology businesses, the NASDAQ ETF, some 63 00:02:49,350 --> 00:02:53,270 Chris Brycki: of these quite focused technology ETFs because that's the sector 64 00:02:53,270 --> 00:02:56,090 Chris Brycki: that's performed quite well, were the other big winners over 65 00:02:56,090 --> 00:02:56,700 Chris Brycki: the last year. 66 00:02:56,980 --> 00:03:00,110 Sean Aylmer: Okay. So what about the other end? Who were the worst and why? 67 00:03:00,470 --> 00:03:03,709 Chris Brycki: Well, the worst performing again, were ones that tended to 68 00:03:03,710 --> 00:03:06,350 Chris Brycki: have done well the previous year. So palladium was one 69 00:03:06,350 --> 00:03:09,200 Chris Brycki: of them, gold, which had a great run up into 70 00:03:09,200 --> 00:03:12,590 Chris Brycki: the COVID crisis gave back some returns, I think fell 71 00:03:12,590 --> 00:03:15,950 Chris Brycki: by 12 or 13% over the last year. The worst of 72 00:03:15,950 --> 00:03:20,019 Chris Brycki: all was an ETF with the code BEAR, BEAR because 73 00:03:20,020 --> 00:03:22,760 Chris Brycki: it bets on the share market falling and obviously over 74 00:03:22,760 --> 00:03:24,660 Chris Brycki: the last 12 months it's been a pretty good period for 75 00:03:24,660 --> 00:03:28,160 Chris Brycki: markets, so we've lost 30% of value over the last year. 76 00:03:28,200 --> 00:03:31,980 Sean Aylmer: So ACDC was a winner and BEAR was a loser. 77 00:03:32,520 --> 00:03:34,930 Chris Brycki: Yeah, that's right. I mean, they've both got four letters, 78 00:03:34,930 --> 00:03:37,589 Chris Brycki: so things are definitely changing in the ETF world. They're all 79 00:03:38,170 --> 00:03:41,670 Chris Brycki: more interesting niche ETFs these days that are making the headlines. 80 00:03:41,920 --> 00:03:44,730 Sean Aylmer: So how popular are the niche ones, Visa ( V), the 81 00:03:44,730 --> 00:03:47,880 Sean Aylmer: mainstream kind of index hugging ETFs? 82 00:03:48,620 --> 00:03:51,330 Chris Brycki: Well, the mainstream ones still take the bulk of new 83 00:03:51,330 --> 00:03:54,380 Chris Brycki: money, so the most popular one over the last year 84 00:03:54,380 --> 00:03:57,250 Chris Brycki: in terms of money coming in was still the Vanguard 85 00:03:57,250 --> 00:03:59,580 Chris Brycki: Australian Shares Index Fund, which is the one we've recommended 86 00:03:59,580 --> 00:04:01,840 Chris Brycki: it for seven years or so now, which is just 87 00:04:01,840 --> 00:04:05,540 Chris Brycki: a very low cost diversified fund. It attracted several billion 88 00:04:05,540 --> 00:04:08,760 Chris Brycki: dollars over the last year, but the growth rates of 89 00:04:08,760 --> 00:04:11,340 Chris Brycki: these more niche ETFs are pretty phenomenal. So over the 90 00:04:11,340 --> 00:04:14,620 Chris Brycki: last year, thematic ETFs, which are these ones that really focus 91 00:04:14,620 --> 00:04:18,680 Chris Brycki: on a very small sector like cloud computing, climate change, 92 00:04:18,820 --> 00:04:22,710 Chris Brycki: biotechnology, there's an interesting one that does investing into online 93 00:04:22,710 --> 00:04:24,159 Chris Brycki: gaming related companies- 94 00:04:24,160 --> 00:04:24,161 Sean Aylmer: Wow. 95 00:04:24,161 --> 00:04:27,310 Chris Brycki: ... ESports and this sort of thing. But these niche ETFs grew 96 00:04:27,310 --> 00:04:29,710 Chris Brycki: over the last year from half a billion in Australia 97 00:04:29,920 --> 00:04:32,010 Chris Brycki: to having close to two and a half billion dollars 98 00:04:32,010 --> 00:04:35,210 Chris Brycki: under management. So almost five times over a year. 99 00:04:35,410 --> 00:04:37,680 Sean Aylmer: It's all retail money? 100 00:04:38,360 --> 00:04:40,360 Chris Brycki: Tends to be particularly with these ones. I mean, they're 101 00:04:40,360 --> 00:04:43,860 Chris Brycki: heavily marketed to retail because they tend to launch after 102 00:04:43,860 --> 00:04:46,400 Chris Brycki: these are already quite embedded trends and things that other are people 103 00:04:46,400 --> 00:04:49,770 Chris Brycki: are talking about and in the newspapers. So the cycle 104 00:04:49,770 --> 00:04:53,240 Chris Brycki: for launching an ETF tends to follow performance. And as 105 00:04:53,240 --> 00:04:55,060 Chris Brycki: a result, yeah, these things do attract a lot of 106 00:04:55,060 --> 00:04:58,160 Chris Brycki: retail funds. Unfortunately, some don't do well and then end 107 00:04:58,160 --> 00:05:00,940 Chris Brycki: up shutting down because they have poor returns and that's 108 00:05:00,940 --> 00:05:02,810 Chris Brycki: happened quite a bit and I expect it will probably 109 00:05:02,810 --> 00:05:04,330 Chris Brycki: continue to happen going forward. 110 00:05:05,770 --> 00:05:09,070 Sean Aylmer: Okay. So if you're investing in an ETF, you mentioned Vanguard with low fees there, I suppose 111 00:05:09,070 --> 00:05:11,969 Sean Aylmer: that's a very important part of the puzzle, to keep 112 00:05:11,970 --> 00:05:12,760 Sean Aylmer: an eye on the fees? 113 00:05:13,180 --> 00:05:15,200 Chris Brycki: Well, we think so. I mean, if you have a look at 114 00:05:15,200 --> 00:05:17,500 Chris Brycki: what's one of the biggest drivers of your long term 115 00:05:17,500 --> 00:05:20,240 Chris Brycki: performance, it's the asset class that you're investing in and 116 00:05:20,240 --> 00:05:23,099 Chris Brycki: fees is the second most important. So getting the right 117 00:05:23,100 --> 00:05:25,529 Chris Brycki: asset class is the number one thing you need to 118 00:05:25,529 --> 00:05:28,620 Chris Brycki: do and making sure you're diversified across asset classes, but 119 00:05:28,940 --> 00:05:32,160 Chris Brycki: in a world where particularly now returns are quite low, 120 00:05:32,210 --> 00:05:35,020 Chris Brycki: so if interest rates are zero in most developed countries, 121 00:05:35,020 --> 00:05:38,339 Chris Brycki: then the returns you can probably expect from the share 122 00:05:38,339 --> 00:05:41,010 Chris Brycki: market are only four or 5% per year and if 123 00:05:41,010 --> 00:05:44,120 Chris Brycki: you're paying one or 2% to a fund manager, that's a big 124 00:05:44,120 --> 00:05:47,110 Chris Brycki: chunk of your returns you're paying away. I mean, I think that's one of the real 125 00:05:47,110 --> 00:05:50,620 Chris Brycki: attractions to ETFs at the moment is people realize that returns 126 00:05:50,620 --> 00:05:52,320 Chris Brycki: are going to be low, so you want to be 127 00:05:52,320 --> 00:05:54,580 Chris Brycki: paying less to your fund manager and keeping more yourself. 128 00:05:54,870 --> 00:05:57,070 Sean Aylmer: Yeah. Okay. Now they've been around for a couple of decades 129 00:05:57,070 --> 00:06:00,570 Sean Aylmer: now, ETFs, have they picked up in popularity post pandemic 130 00:06:00,570 --> 00:06:02,099 Sean Aylmer: or during the pandemic and since then? 131 00:06:02,450 --> 00:06:04,560 Chris Brycki: Oh massively. So over the last year, it's been the 132 00:06:04,560 --> 00:06:07,810 Chris Brycki: biggest year of growth that I've seen, percentage wise and 133 00:06:07,810 --> 00:06:10,349 Chris Brycki: dollar wise. So about a year ago, we were sitting 134 00:06:10,350 --> 00:06:13,549 Chris Brycki: at, I think, 57 billion or so in ETFs in 135 00:06:13,550 --> 00:06:16,970 Chris Brycki: Australia, which was already pretty great growth since I think 136 00:06:16,980 --> 00:06:19,160 Chris Brycki: 2013, when I started looking at them, there was only 137 00:06:19,160 --> 00:06:22,140 Chris Brycki: eight or 10 billion, so they had already five times, 138 00:06:22,330 --> 00:06:25,359 Chris Brycki: they just cracked a hundred billion dollars early this year, 139 00:06:25,360 --> 00:06:28,279 Chris Brycki: so they grew by close to 80% over one year. 140 00:06:28,640 --> 00:06:30,960 Chris Brycki: Now some of that was markets rebounding, but actually a 141 00:06:30,960 --> 00:06:33,100 Chris Brycki: lot of it was new money coming into them as well. 142 00:06:33,660 --> 00:06:39,560 Sean Aylmer: Right. We talk about retail investors, but in that market 143 00:06:39,560 --> 00:06:42,770 Sean Aylmer: there's everything from day traders who watch their concept screen 144 00:06:42,839 --> 00:06:45,049 Sean Aylmer: all day to others who just sort of sit and 145 00:06:45,050 --> 00:06:46,850 Sean Aylmer: forget in a sense, do you know what sort of 146 00:06:46,850 --> 00:06:47,580 Sean Aylmer: money's coming in? 147 00:06:48,020 --> 00:06:50,650 Chris Brycki: Well, the stats that I've seen are that actually one 148 00:06:50,650 --> 00:06:53,150 Chris Brycki: in two ETFs, or at least the dollars going into 149 00:06:53,150 --> 00:06:55,480 Chris Brycki: one or two ETFs comes from self- managed super funds. 150 00:06:55,580 --> 00:06:55,580 Sean Aylmer: Right. 151 00:06:55,580 --> 00:06:58,970 Chris Brycki: So that's definitely a big source of money for ETFs, which 152 00:06:58,970 --> 00:07:01,910 Chris Brycki: makes a lot of sense because historically self- managed super 153 00:07:01,910 --> 00:07:05,640 Chris Brycki: funds have struggled to get good overseas investing exposure, which 154 00:07:05,640 --> 00:07:08,740 Chris Brycki: ETFs do very well and at low cost and have found it 155 00:07:08,740 --> 00:07:11,900 Chris Brycki: hard to diversify into other defensive assets like fixed interest 156 00:07:11,900 --> 00:07:14,460 Chris Brycki: and gold. So self- managed super funds and we definitely 157 00:07:14,460 --> 00:07:17,670 Chris Brycki: see a lot of SMSFs using ETFs through our platform 158 00:07:18,190 --> 00:07:21,900 Chris Brycki: on the flip side, with these more high octane ETFs 159 00:07:21,900 --> 00:07:24,470 Chris Brycki: that are a bit more high risk and can go 160 00:07:24,470 --> 00:07:26,870 Chris Brycki: well or badly, they tend to attract the day traders. 161 00:07:27,020 --> 00:07:29,320 Chris Brycki: So for instance, there are some ETFs listed that are 162 00:07:29,710 --> 00:07:33,170 Chris Brycki: leveraged ETFs, which give you two or three times the 163 00:07:33,170 --> 00:07:36,270 Chris Brycki: daily return of the share market. So if you're imagining 164 00:07:36,270 --> 00:07:38,900 Chris Brycki: a day trader wanting to really amplify their return and 165 00:07:38,900 --> 00:07:41,250 Chris Brycki: bet on whether the market's going up or down tomorrow, 166 00:07:41,470 --> 00:07:44,020 Chris Brycki: those sort of products are attractive to them, but they're 167 00:07:44,020 --> 00:07:47,530 Chris Brycki: really terrible products for a long term investor because that 168 00:07:47,530 --> 00:07:49,700 Chris Brycki: leverage costs a lot of money and they tend to 169 00:07:49,700 --> 00:07:52,110 Chris Brycki: really perform poorly over longer periods of time. 170 00:07:52,430 --> 00:07:54,110 Sean Aylmer: Stay with me, Chris, we'll be back in a minute. 171 00:07:59,060 --> 00:08:01,900 Sean Aylmer: My guest this morning is Chris Brycki, CEO of Stockspot. Looking 172 00:08:01,900 --> 00:08:05,410 Sean Aylmer: at it more generally and not just ETFs, but investing, 173 00:08:05,410 --> 00:08:07,080 Sean Aylmer: when you have a market like you have at the 174 00:08:07,080 --> 00:08:10,360 Sean Aylmer: moment and it has hit new record highs in recent 175 00:08:10,360 --> 00:08:13,660 Sean Aylmer: times and you look at a bank like the Commonwealth Bank, it's 176 00:08:13,660 --> 00:08:16,820 Sean Aylmer: share price has done incredibly well recently, how do you 177 00:08:16,820 --> 00:08:19,120 Sean Aylmer: go about finding opportunities in the markets? 178 00:08:19,650 --> 00:08:21,420 Chris Brycki: Well, it's a good question and we get it quite 179 00:08:21,420 --> 00:08:24,780 Chris Brycki: often. I think there's a reluctance to invest in the share market 180 00:08:24,780 --> 00:08:27,020 Chris Brycki: when it's hitting all- time highs. I guess people are 181 00:08:27,020 --> 00:08:29,680 Chris Brycki: naturally bargain hunters and they want to buy the discount. 182 00:08:29,920 --> 00:08:31,550 Chris Brycki: In fact, if you have a look at the evidence 183 00:08:31,550 --> 00:08:34,040 Chris Brycki: of returns when you buy the market at all- time 184 00:08:34,040 --> 00:08:36,429 Chris Brycki: highs, it's no different if you buy markets at any 185 00:08:36,429 --> 00:08:39,670 Chris Brycki: other time. So I think one of the education pieces 186 00:08:39,670 --> 00:08:41,980 Chris Brycki: we've been doing recently with clients is that there is 187 00:08:41,980 --> 00:08:44,030 Chris Brycki: no difference whether you're buying the market at an all- time 188 00:08:44,030 --> 00:08:46,280 Chris Brycki: high or not. In fact, this year in the US, 189 00:08:46,370 --> 00:08:49,610 Chris Brycki: there's been 30 all- time highs already this year and all- 190 00:08:49,610 --> 00:08:52,640 Chris Brycki: time highs tend to attract more all- time highs. And 191 00:08:52,640 --> 00:08:55,240 Chris Brycki: so our position to clients is there's no need to 192 00:08:55,240 --> 00:08:58,410 Chris Brycki: wait for bargains or look for bargains. Ultimately, if it's 193 00:08:58,410 --> 00:09:00,970 Chris Brycki: a bargain that everyone should already know about that bargain 194 00:09:00,970 --> 00:09:03,510 Chris Brycki: and it's unlikely that you have extra information that others 195 00:09:03,510 --> 00:09:06,630 Chris Brycki: don't have. So just diversify, spread out your money and 196 00:09:06,630 --> 00:09:09,010 Chris Brycki: don't worry about where the market is relative to history, 197 00:09:09,010 --> 00:09:11,270 Chris Brycki: because it's not actually a useful anchor point. 198 00:09:11,520 --> 00:09:15,140 Sean Aylmer: The catchphrase it's time in as opposed to timing. 199 00:09:15,540 --> 00:09:16,520 Chris Brycki: Absolutely correct. 200 00:09:16,770 --> 00:09:19,740 Sean Aylmer: So hanging around the stock market, do you think the market at the 201 00:09:19,740 --> 00:09:22,380 Sean Aylmer: moment is fairly valued? That's probably a nice way of 202 00:09:22,380 --> 00:09:22,610 Sean Aylmer: putting it. 203 00:09:22,980 --> 00:09:25,510 Chris Brycki: Well, the market is never fairly valued. The problem is 204 00:09:25,510 --> 00:09:29,010 Chris Brycki: working out whether it's undervalued or overvalued and when it's 205 00:09:29,010 --> 00:09:31,120 Chris Brycki: going to revert to a different level is the hard 206 00:09:31,120 --> 00:09:34,809 Chris Brycki: thing. So markets can stay overvalued or undervalued for decades. 207 00:09:34,960 --> 00:09:37,410 Chris Brycki: And so, I always question people that try and guess 208 00:09:37,410 --> 00:09:40,120 Chris Brycki: whether the market's overvalued or undervalued, because you're basically trying 209 00:09:40,120 --> 00:09:43,410 Chris Brycki: to predict so many different variables that are just unknowns. 210 00:09:43,410 --> 00:09:47,859 Chris Brycki: People's behavior, macroeconomics, so is it undervalued or overvalued? I 211 00:09:47,860 --> 00:09:49,579 Chris Brycki: would say, depending on how you look at it could 212 00:09:49,580 --> 00:09:52,640 Chris Brycki: be either compared to history. If you look at sort 213 00:09:52,640 --> 00:09:55,420 Chris Brycki: of simple ratios, it looks expensive, but when you can 214 00:09:55,420 --> 00:09:57,880 Chris Brycki: see their interest rates in Australia are zero and the 215 00:09:57,880 --> 00:10:00,670 Chris Brycki: returns from other assets relatively are very low, it looks 216 00:10:00,670 --> 00:10:04,040 Chris Brycki: cheap. So unfortunately these are all the sort of considerations 217 00:10:04,040 --> 00:10:07,360 Chris Brycki: you need to think about. And yeah, there's market strategists 218 00:10:07,360 --> 00:10:09,429 Chris Brycki: out there and analysts out there trying to make predictions 219 00:10:09,429 --> 00:10:11,960 Chris Brycki: about the future. Our view is no one can predict 220 00:10:12,020 --> 00:10:14,420 Chris Brycki: the future, so just prepare for all different types of 221 00:10:14,420 --> 00:10:16,410 Chris Brycki: future and the best way you can do that is 222 00:10:16,410 --> 00:10:19,670 Chris Brycki: by owning different asset classes that perform well or poorly 223 00:10:19,670 --> 00:10:22,030 Chris Brycki: in different environments. So that's why for instance, at the 224 00:10:22,030 --> 00:10:24,550 Chris Brycki: moment, Gold's done very badly over the last year, but 225 00:10:24,550 --> 00:10:27,929 Chris Brycki: we think it's an incredibly important asset to own because 226 00:10:28,160 --> 00:10:31,559 Chris Brycki: in certain environments where there's low interest rates and growing 227 00:10:31,559 --> 00:10:34,300 Chris Brycki: inflation, it will actually perform quite well, whereas other asset 228 00:10:34,300 --> 00:10:35,210 Chris Brycki: classes might not. 229 00:10:35,750 --> 00:10:37,719 Sean Aylmer: That's some of the most sensible advice I've heard for a long 230 00:10:37,720 --> 00:10:39,640 Sean Aylmer: while Chris. I mean, I've looked at stock markets for 231 00:10:39,640 --> 00:10:41,959 Sean Aylmer: 30 years and I totally agree. It is really hard 232 00:10:41,960 --> 00:10:44,070 Sean Aylmer: to get it right, particularly when you're a retail investor. 233 00:10:44,520 --> 00:10:46,559 Chris Brycki: Yeah. There's an addiction to kind of predict and I 234 00:10:46,559 --> 00:10:48,329 Chris Brycki: think in most areas of life, people expect that if 235 00:10:48,330 --> 00:10:50,390 Chris Brycki: you do more work and more research, you get better 236 00:10:50,390 --> 00:10:53,540 Chris Brycki: results. But counterintuitively, when it comes to investing, if you 237 00:10:53,540 --> 00:10:56,390 Chris Brycki: do more work, you don't get better results and even 238 00:10:56,390 --> 00:10:59,079 Chris Brycki: people that spend lives trying to analyze share markets don't 239 00:10:59,200 --> 00:11:03,070 Chris Brycki: outperform an index fund typically. And so markets, even though 240 00:11:03,070 --> 00:11:05,370 Chris Brycki: they're not perfect, they're still hard to beat and unless 241 00:11:05,370 --> 00:11:07,420 Chris Brycki: you are one of the one in a thousand hedge 242 00:11:07,429 --> 00:11:10,580 Chris Brycki: funds that have worked out a secret trick to beating the 243 00:11:10,580 --> 00:11:13,189 Chris Brycki: market, the trick is actually just to own the whole market. 244 00:11:13,450 --> 00:11:15,290 Sean Aylmer: And get advice. That's the other thing I would say 245 00:11:15,290 --> 00:11:17,460 Sean Aylmer: to retail investors and I appreciate day traders aren't going 246 00:11:17,460 --> 00:11:20,130 Sean Aylmer: to do that, but if you are not a day trader, I 247 00:11:20,130 --> 00:11:22,650 Sean Aylmer: actually think getting financial advice really matters. 248 00:11:23,309 --> 00:11:25,890 Chris Brycki: Absolutely. And getting advice from someone that isn't going to 249 00:11:25,890 --> 00:11:27,721 Chris Brycki: put you into a product they've manufactured. And I mean- 250 00:11:27,721 --> 00:11:28,620 Sean Aylmer: Yeah. Yeah. 251 00:11:28,620 --> 00:11:31,590 Chris Brycki: The reason I started my business was because unfortunately in Australia, 252 00:11:31,590 --> 00:11:34,219 Chris Brycki: historically at least, a lot of the advice has been 253 00:11:34,220 --> 00:11:36,990 Chris Brycki: really awful advice just to buy these high cost products 254 00:11:36,990 --> 00:11:40,089 Chris Brycki: where the person recommending those products or their employer makes 255 00:11:40,090 --> 00:11:42,820 Chris Brycki: a large margin, but the end investor loses out. 256 00:11:42,910 --> 00:11:45,949 Sean Aylmer: Hopefully the Banking Royal Commission, it hasn't stamped out, but 257 00:11:45,950 --> 00:11:49,689 Sean Aylmer: hopefully it's improved the situation. And certainly with the bank selling some of their financial 258 00:11:49,690 --> 00:11:52,550 Sean Aylmer: advisory firms, maybe things will get better in the future. 259 00:11:53,340 --> 00:11:54,630 Chris Brycki: Yeah. I hope so as well 260 00:11:54,860 --> 00:11:56,349 Sean Aylmer: Chris, thanks for talking to Fear and Greed. 261 00:11:56,590 --> 00:11:57,229 Chris Brycki: My pleasure. 262 00:11:57,530 --> 00:12:01,470 Sean Aylmer: That was Chris Brycki, CEO of online investment advisor, Stockspot. This 263 00:12:01,470 --> 00:12:03,500 Sean Aylmer: is the Fear and Greed daily interview. Join me every 264 00:12:03,500 --> 00:12:06,179 Sean Aylmer: morning for the full Fear and Greed podcast with all 265 00:12:06,179 --> 00:12:08,870 Sean Aylmer: the business news you need to know. I'm Sean Aylmer. 266 00:12:08,990 --> 00:12:09,670 Sean Aylmer: Enjoy your day.