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‘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
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Anonymous - Why does this get all the media attention when in reality it affects very few and the charges are minimal? How about reporting on all the ISA TPD.......
Anonymous - This got to be the smartest comment this century ?!....
nan - So what do you do if you are being ripped of and then can't afford the body corporate fees....
MarkL - The banks may not charge dead people any more ........... but they won't charge them any less either!....