One of the first things you should learn about investing is that it’s all about the long game. Investors know that it’s more about how much time you spend in the market as opposed to hitting the market at the right time. You should have a diversified portfolio and avoid reacting to volatility to get the best long-term returns.
This does not constitute advice and advice should be sought in all instances before acting on it.
Seize opportunities
While you shouldn’t let the constant peaks and troughs of the market affect your investment strategy, that doesn’t mean you can’t take advantage of certain opportunities that might present during volatile times. If you step back and take a long-term view you might be able to invest in some quality stocks when they’re affordable and benefit from the possibility of a later rise.
Work with your financial adviser to seize those opportunities.
Stay the course
Keeping your investment goal in mind will help you stay the course during your investment journey. Don’t try to second guess how much a dip will affect your investments, trust in your choices to recover and provide the returns you need in the long-run. Although there are opportunities to be found sometimes, more likely than not, sticking with your selections will pay off.
Diversify
A diverse portfolio helps mitigate the effects of a volatile market. By owning a mix of assets, including shares, bonds, property, and cash, you’ll be protected in the event one area underperforms.
By having investments across all kinds of assets, one area not performing well is balanced out by the performance of your other assets. It’s a strategic approach that takes the unpredictability of the market into consideration so your investments stay protected.
Risk and time
If your portfolio is diversified, then you have a strategy that not only covers you in case of volatility, but also incorporates your attitude toward risk, so you shouldn’t have problems staying committed to your investments. Your risk appetite dictates which investments you choose – your adviser can guide you on which ones fit your strategy.
If you’re still reacting to the constant up and down of the market each time, then it might be time to reevaluate your strategy and select a mix of assets with varying degrees of risk associated with them.
Professional help
No one can predict what will happen in the stock market, especially at the moment with the economy attempting to recover from the effects of the pandemic. No matter what happens though, diversification and perseverance over the long term are what’s most important. If you need help getting started or reviewing your investment plan, reach out to the experts at Dental & Medical Financial Services today.
Want to build & protect your wealth?
Investments | Financial Planning | Retirement | Save Tax | Protection |
Dental & Medical Financial Services have been helping doctors and dentists to build and protect their wealth, whilst saving tax for over 25 years.