In the year after the coronavirus pandemic swept the globe, vaccine rollouts kick-started a period of recovery. Many countries attempted to return to normal in 2021 — or as close as they could get — and many were hopeful about the economy even through the beginning of this year. But with rising energy prices, sky-high inflation, and interest rate increases in the housing market, how are you expected to keep your investment plan on track?
This does not constitute advice and advice should be sought in all instances before acting on it.
Keep an eye on the market
As many investors know, there are ways to keep up with and even beat the odds in a volatile market. They know that the best time to invest is when the market is in a dip and they make sure to keep an eye on how the market is performing so they know when to strike to make the state of the market work to their advantage.
Become an active participant
While it’s difficult to control your portfolio completely while maintaining a busy medical or dental career, and working with a profession is key, it’s important to remain an active participant in your investment journey. Be aware of the effects that inflation, interest rate increases, continued COVID flare ups, and Brexit have on your portfolio and consult your financial adviser for ideas to minimise risk and maximise your returns no matter the economic environment.
Understand how you’re beating inflation
Sky-rocketing inflation will likely dictate how many people view their finances for the foreseeable future. So, it’s important to be aware how inflation impacts your investments, but it’s also crucial that you understand how investing is actively helping you beat inflation.
Despite presenting investing opportunities, an economy suffering from high inflation will present challenges and your portfolio, no matter how robust and diversified, is no exception. But choosing to invest your money will protect its real value over time. If you keep it as cash, you’ll see the spending power of your money reduce over time, but with investing your money will usually, at the very least, maintain its value in the long-run.
Diversification is key
Hopefully you know by now how important diversification is for successful investing. There’s no way to predict what the future will bring and the best way to prepare for the unknown is a diverse investment portfolio.
This sentiment is true, even when looking at individual asset classes, from government bonds to commodities – each will have their periods of performing well and they will also have their periods of underperforming.
For the best chance of building your wealth, you need to spread your investments across different sectors, regions, and asset classes and remain committed for the long-term. If you have individual companies you feel strongly about investing in, remember that there is a higher risk with this approach so do so sparingly and always keep an eye on performance.
Seeking help to build a balanced portfolio
Maybe you don’t even know where to start, or maybe you’re concerned about how the pandemic and all the subsequent recovery efforts will affect your portfolio. No matter your concerns surrounding your investment plan, we’re here to help. Get in contact with the experts at Dental & Medical Financial Services for assistance creating a balanced portfolio today.