Powered by MOMENTUM MEDIA
subscribe to our newsletter sign up

‘Ride through’ volatility, investors told

‘Ride through’ volatility, investors told

As SMSF trustees look outside traditional investments for yield, one financial planning group is warning investors not to abandon their long-term investment strategies.

In a recent update, Infocus warned investors to remain committed to their long-term investment strategies, emphasising they should “ride through” the volatility.

“Speed bumps along the way are annoying but they do not alter the long-term view and, hence investment strategies,” the update stated.

The dealer group said investors would be better served by retaining their current strategies and begin to trade when there is a longer period of stability.

“Investors who try to trade through periods like these run the risk of selling during a dip and not buying back until the market is much higher," Infocus said.

“That means such investors are locking in trading losses. It is far better to position one’s investment strategy before these events and then just ride through the volatility – whether in cash or growth assets.”

Infocus also argued that much of the volatility is overplayed and seemingly misunderstood by market commentators.

“Whenever a market moves sharply, it is tempting for analysts to say what is causing that move.

“The truth is there are usually many factors at work and it is impossible to say precisely why a market moved on a particular day,” the group said.

Infocus reminded investors that volatility is not simply an indication that markets are going down, but rather that they are fluctuating.

‘Ride through’ volatility, investors told
‘Ride through’ volatility, investors told
nestegg logo
subscribe to our newsletter sign up
FROM THE WEB
Recommended by Spike Native Network
Anonymous - Of great concern is the impact of Victorian stamp duty changes to off-the-plan purchases, which most often is in inner city suburbs, and the.......
Roy - Why would investing in a company structure lock up the funds.? I presume the funds would go in as a loan can be paid back at any time ?....
Anonymous - The difference in regards to home owners, is if they are a pensioner in Sydney, they would be much better off selling & going regional. Someone in.......
Joe Vaslem - Totally agree....