Do you remember the Fire Phone, or the Coolest Cooler? What about the Microsoft Kin or Juicero? No, well you’re probably not alone.

Most investment portfolios have three basic components. Cash that has option value for future buys, equity for growth that hopefully exceeds inflation, and income that generates cash flow. Normally, our income investments are stable - we get some capital appreciation with predictable cash distributions. That was the case, until 2022!

So much of the investment industry is focused on the “how” - how to get enhanced returns, how to build a portfolio, how to save tax, or how to capture the “next big thing”. Very few companies emphasize the “Why” but given the increased commoditization of investment products and the pressure on many advisors to sell proprietary funds, it’s never been so important for individual investors to find their “Why”.

Our House, the gentle Crosby, Stills, Nash and Young classic - written, incidentally, by Graham Nash - strikes an emotional beat familiar to many homeowners or wannabe homeowners. The song describes an everyday scene yet it’s beloved by millions because, as the cliché goes, home is where the heart is. It’s also why decisions around selling or buying real estate, usually the biggest asset a person will own, go far beyond a financial transaction.

Keeping your nerve when you see minus signs on your portfolio statement is not easy. Throw in a global pandemic, the rising cost of living, interest rate hikes, and a news cycle of war and political division, and it’s little wonder many investors want to exit the market and hunker down until the good times return.

Bull versus bear? Mutual fund versus ETF? How do they work out the inflation rate? How many times have your eyes skimmed cluelessly over an article or nodded in meetings at investment terms that are familiar but mean nothing to you?

There’s a reason the likes of Coldplay and U2 sell millions of albums - people know what they’re getting. Whether it’s The Edge’s chiming guitar or Chris Martin’s lovelorn warbling, familiarity is comforting. Less widely known, and arguably more interesting bands, like Sparks for example, who switch up genres, often endure more sporadic profits.

Filling up your gas tank in recent months is like seeing the bill for your toddler’s birthday party – “how much?” For a smooth family life, however, both must be paid.

Gordon Gekko hasn’t done the investment industry’s reputation any favours. Michael Douglas’ unscrupulous movie character quickly became shorthand for all that is wrong with Wall Street and financial markets with his infamous ‘greed is good’ speech. But you don’t have to look too far away from the big screen to see real-life examples of people whose actions have perpetuated the link between the wealth industry, untrustworthy characters and get-rich-quick trades.