We are living in challenging times at the moment, with breaking news being announced almost daily.
When the markets turn as volatile and confusing as they have over recent months, even the most patient investors may come to question the wisdom of the investment plan they’ve been following. No matter what so-called experts and the media will have you believe, where markets go from here, and which asset classes will be the star performers, cannot be predicted.
At LIFT, we’ve seen a lot of difficult markets come and go and we can empathise with clients who may find current market conditions unsettling.
Whilst it’s easy to be distracted by the onslaught of catastrophist media headlines, it’s important to keep your focus where it belongs, namely on (a) your goals, (b) on our long-term plan for the achievement of your goals, and (c) on your portfolio as the long-term funding medium for that plan.
You would not be human if you didn’t experience some degree of fear with current events and how they might impact your future. Our role as financial planners remains, not to insulate our clients from short to intermediate-term volatility, but to minimise long-term regret. The best way we know to do that is by encouraging our clients to stay the course and not give into the fear and panic selling.
Our portfolios are built on tried and tested principles. We invest for the long term and ignore the ‘noise’ created by short-term events. This will provide positive real returns over time but comes at the price of occasional bursts of volatility.
In conclusion, staying the course is vital when it comes to investing. Building a relationship with a qualified financial planner can provide invaluable financial coaching by helping you to avoid overreacting to market events.
If you think you would benefit from speaking to a Chartered Financial Planner, even if just for a second opinion about your current investment portfolio, please get in touch.
This blog does not constitute as financial advice. The value of investments may go down as well as up.