This seemed like the perfect topic to kick off our new blog with. It is a subject that many investors have been wrestling with over recent months. When the markets are behaving as they are currently, the temptation is to sell out of equity markets. However, this is often the wrong course of action to take.
In the short term, markets are driven by news, confidence and momentum. This can cause extreme market volatility. However, this needs to be framed in the context of why you are investing. Your investment timeframe should be long term when looking at equities so your returns are linked to company valuations and dividends as opposed to short term noise.
The temptation will always be there to jump ship when the going gets rough, however, the key to a successful investment experience is not market timing. The key instead is to adopt a disciplined, robust and diversified investment approach that is designed with your long term goals in mind, and managed properly over the long term.
In times like these it is important to remember that at some point the markets will recover and relief will replace the current worries. If you are worried about your portfolio and would like a second opinion, then please do get in touch.