Ep: 368 Keep your powder dry: Sometimes it’s wise to invest less

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In this episode, Stuart explores why sometimes the smartest investment strategy is to do less. With global markets hitting all-time highs and every major asset class delivering positive returns in 2025, Stuart cautions against overconfidence. He explains why sitting on cash or keeping borrowing capacity in reserve can be a strategic move, not a missed opportunity. Drawing on recent market trends, including the unusual simultaneous rise of gold and bitcoin, Stuart unpacks why this environment feels disconnected from economic and political realities.

He also discusses the impact of index investing on market momentum, why market-cap indexing may behave like a growth strategy, and why blindly following the crowd can increase your risk exposure. Alongside this market reflection, Stuart answers a detailed listener question from Bernadette, a 51-year-old planning for retirement. He analyses her strategy to maximise super contributions, transition into part-time work, and possibly adopt Hostplus, ChoicePlus or a WRAP account to improve tax efficiency.

With practical advice on asset allocation, superstructure selection, and risk management, Stuart reinforces a core message: building long-term wealth doesn’t require reacting to every market move. Sometimes, keeping your powder dry is the most powerful move you can make.

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IMPORTANT: This podcast provides general information about finance, taxes, and credit. This means that the content does not consider your specific objectives, financial situation, or needs. It is crucial for you to assess whether the information is suitable for your circumstances before taking any actions based on it. If you find yourself uncertain about the relevance or your specific needs, it is advisable to seek advice from a licensed and trustworthy professional.