Rules For Investing During Volatile Times
When markets are volatile, it's important to stick to some basic investment rules. Here are five tips to help you keep your investments on track.
1. Stick to your guns
Understand what youre trying to achieve and how long youre prepared to invest. The longer your investment timeframe, the more likely youll experience some form of short-term market volatility make sure youre comfortable with that prospect.
2. Understand how you feel about investment risk
Your investment strategy should reflect your attitude to investment risk for example, investing in growth assets like shares can increase your long-term returns, but its likely youll experience greater short-term fluctuations than defensive assets like cash. Take a risk profile assessment to understand your tolerance to market volatility.
3. Invest in quality
Volatile markets arent the place for speculation, unless youre prepared to lose your money on a bet that might or might not come good. Look for quality investments, and get a second opinion from your financial adviser.
4. Dont try to time the market
Investing would be simple if you could always pick the best time to put your money in and take it out. Remember that time in the market, not timing the market, is the key.
5. Get advice from a qualified source
If youre really serious about something whether its on a sporting field, in business you should seek advice. Building and managing your wealth is no different. If you dont have a financial adviser, seek an adviser in your area who can help you with the following:
set your financial goals
devise strategies to reach your goals
choose investments that suit your needs
make informed financial decisions
1. Stick to your guns
Understand what youre trying to achieve and how long youre prepared to invest. The longer your investment timeframe, the more likely youll experience some form of short-term market volatility make sure youre comfortable with that prospect.
2. Understand how you feel about investment risk
Your investment strategy should reflect your attitude to investment risk for example, investing in growth assets like shares can increase your long-term returns, but its likely youll experience greater short-term fluctuations than defensive assets like cash. Take a risk profile assessment to understand your tolerance to market volatility.
3. Invest in quality
Volatile markets arent the place for speculation, unless youre prepared to lose your money on a bet that might or might not come good. Look for quality investments, and get a second opinion from your financial adviser.
4. Dont try to time the market
Investing would be simple if you could always pick the best time to put your money in and take it out. Remember that time in the market, not timing the market, is the key.
5. Get advice from a qualified source
If youre really serious about something whether its on a sporting field, in business you should seek advice. Building and managing your wealth is no different. If you dont have a financial adviser, seek an adviser in your area who can help you with the following:
