subscribe to our newsletter sign up
LIVE
Royal Commission superannuation hearings - Live Coverage:

‘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
nestegg logo
subscribe to our newsletter sign up
FROM THE WEB
Recommended by Spike Native Network
Anton Boreckyi MFP C... - For God's sake, what is this Barrister looking for? He certainly will not be receiving any accolades. if an investor has made the decision to their.......
Anonymous - Is Mr Hodge trying to give personal financial advice?....
Anonymous - Mr Wilkins, the quoted 'expert', has obviously not read the Mercer analysis which states that except for an incredibly small (and irrelevant portion.......
Anonymous - Every single adviser knows that when we did the right thing with commissions, including insurance within super, CFS just stopped adviser payments and.......