If you’re an investor, it can also be challenging to keep your emotions in check when there’s so much economic and geopolitical noise being reported on a daily basis.
It’s highly unlikely that Rudyard Kipling was thinking about investments when he penned his famous poem ‘If’, but his words will resonate with investors. Even for experienced investors, the current investment landscape presents challenges, but those who can keep their head when all about are losing theirs have the best chance of success.
Remember that market volatility is normal and investors who hold a well-diversifi ed, risk-appropriate portfolio and stay focused on their long-term objectives and aspirations are well equipped.
Clarity affords focus
Although plans may need to be adapted from time to time to take account of changes in individual circumstances or investment goals, having a well-thought-out strategy helps investors deal with unexpected events and remain calm when markets become turbulent. Setting clear goals and developing a corresponding plan to achieve them is fundamental.
While it is easy to say that the nature of investing dictates that the value of investments can fall as well as rise, it is challenging for investors to see the value of their portfolios drop during periods of market weakness. Being confi dent in your plans, staying the course, maintaining a long-term outlook and avoiding knee-jerk reactions are imperative