As the increasing cost of living, the rising cost of energy, and the ongoing conflict within Ukraine, remain in the news, It’s easy to be overwhelmed by negative feelings in certain aspects of our lives.
Many people are concerned about the best way to manage their investments through turbulent markets, a soaring inflation rate, and turbulence in global politics. This is a subject that’s in the minds of many, and that’s one of the main reasons I decided to write this article. I want to remind you that whether you’re an investor or not is essential to keep an eye on the future. Here’s why.
The market’s time beats the art of timing markets. In previous years, you might have heard your financial advisor cite the well-known principle of finance that the time in the market is better than trying to time the market. It’s among the most valuable pieces of advice for investing that me and my advisors here at All Aspects Financial can offer right now.
The downturn is certainly not uncommon; as an investor, you should be ready to endure the bear market since research suggests that investing over the long run is among the most beneficial ways to increase your wealth overall.
Don’t miss out on the most exciting days on the market
Naturally, our first response is to run and cut during the bear market. However, the fact is that the biggest gains per day are made during these periods. It’s not necessary to mention that if you skip the current market by dipping into cash, it will be detrimental to the overall return. We don’t want to see that happen.
Reinvesting dividends
It is worth noting that by reinvesting any dividends that you receive, you could increase the total return on your investment. Since the majority of dividends are paid out at intervals of time, if you try to plan your entry and exit of markets, you could be unable to receive these important payments.
Keep investing
If you’re an investment professional, you’ll realize that you must view your investments as a long-lasting aspect of your life. You’re investing for the long haul, which means making the most of the smooth and staying in the game for the duration of your investment.
If you are able to invest and focus on your long-term financial objectives, you are likely to profit from the expansion of the economy and businesses in the long run. It’s tempting to pull money out of the market for short-term gains, especially during these volatile times, but the past shows that this will likely result in lower returns overall.
Future opportunities
Don’t believe this is the end of the road and that nothing can be done to capitalize on the current situation. There are still opportunities to profit. For instance, there’s an investment opportunity, in the long run, to take advantage of the chance, currently to invest in low-value stocks because of the market volatility that we are experiencing at the moment. If you’re interested in finding more information, and if the finances are feasible and you’re interested, talk to your advisor or contact All Aspects Financial for more details.
Concerns or questions?
If you’ve read all up to this point, congratulations! If you have any concerns or questions regarding the subjects I’ve discussed, you can contact me for assistance and advice. While we wait, we should remember the famous saying: keep calm and carry on!
Find out how our bespoke financial advice can benefit you by contacting us for a free no-obligation consultation. Simply contact us through the form below.
Michael Nicolaou DipPFS is the owner of All Aspects Financial for Financial Advice.
Investments can rise as well as fall. As a result, you may receive less than you originally put in. The content of this article is intended for information purposes only and doesn’t provide financial advice. Always seek advice from a professional when making investments that involve risk.
