Investing in volatile times
 Recent
volatility in the world investment markets can cause a lot of unnecessary
anxiety for investors. At such a time, risks can be taken causing the loss
of long-term, well earned benefits. Market downturns are inevitable and it
is impossible to predict movements accurately.
Moving in cycles
It might be tempting to move money out of the share market during times of
volatility or weakness. However, markets move in cycles that are often
unpredictable. Historically, recoveries follow downturns and vice versa.
Being in the market at the time of recovery is important.
Go for quality
Diversification of your portfolio will help to protect you against
downturns. Whilst one asset class might perform poorly it can be balanced by
another that performs well. The underlying quality of investments should not
be judged by short-term ups and downs. Volatility often reflects the panic
of millions of impatient investors. Waiting for short-term fluctuations to
subside helps to identify quality investments and enables them to produce
better returns.
Consult your licensed financial advisor at Saward Dawson Financial Services
who would be pleased to review your investment plan to see if changes need
to be made. It may be time to change your portfolio but it should be done in
conjunction with careful thought and advice.
Published : 3 March 2008
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