Wisdom suggests that you should buy when stock markets are at their lowest point and sell at their highest. In reality this is almost impossible to achieve – no one can reliably predict the exact time markets will finish falling or when they will reach their peak. However, history gives us three lessons: 1. Each bear market has been followed by a bull market 2. Bull markets have lasted more than three times longer than bear markets 3. Returns in a bull market were substantially more than losses in a bear markets
It must be noted that Past performance is no guarantee of future success. By trying to guess exactly when to invest, you may miss out on some falls, but could also miss some potential rises. Missed opportunities like these can take a bite out of returns.
DON'T MISS OUT ON A MARKET RECOVERY It can be difficult to take a long-term view during volatile markets with daily injections of bad news. If you develop the ability to focus on the long-term, you'll have mastered the primary approach to living with volatility's downside.
By speaking to a financial adviser, you can discuss your investment options and find a solution that's right for you. For further information or should you have any questions, contact Rob on T: (+6) 011 515 656 49 or E: robert.gourlay@holbornassets.com
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