Tag Archives: investment

Setting Realistic Investment Performance Expectations

Setting Realistic Investment Performance Expectations

Managing overall investment exposure to market volatility.

Trying to navigate the ups and downs of market returns, investors seem to naturally want to jump in at the lows and cash out at the highs. But no one can predict when those will occur. Fortunately, there are a number of time-tested strategies that may help you deal with investment market volatility. Two of the most prevalent are: invest for the long-term, and maintain realistic performance expectations when it comes to returns.

Setting Realistic Investment Performance Expectations

By coupling these strategies with maintaining proper portfolio diversification and avoiding the pitfalls of market timing, you’ll have the foundation needed to help manage your overall exposure to market volatility.

Historically, the stock market has been up more than down. Often after a lengthy bull market, some investors may lose sight of the fact that their investments could generate negative returns. In order to keep market volatility in perspective, it’s important to maintain realistic expectations about your investments, especially if returns move closer to their historical average.

It’s important to focus on your long-term goals and not become distracted by short-term volatility. While losing money in the financial markets is never easy to accept, remember the old adage: Time is on your side.

Typically, the longer an investment portfolio is held, the more likely overall positive results are realised. The lesson here is to prepare for the long haul and try not to overreact to periods of uncertainty.

Maintain a diversified Investment Portfolio

Choppy waters, not full-on gale

Wait for the bad weather to pass and stay the course

Volatility fluctuates based on where we are in the economic cycle, but it is a normal feature of markets that investors should expect. When stock markets start correcting, daily injections of bad news may sound as though it will never end. This can spark anxiety, fuel uncertainty and trigger radical decisions in even the most seasoned investors.

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Investing for long term growth

Protecting wealth

 

Identifying your investment objectives is a lifelong process

A total wealth solution has no value unless it is properly implemented through an appropriate investment strategy. If you’ve got a sufficient amount of money in your cash savings account – enough to cover you for at least six months – and you want to see your money grow over the long term, then you should consider investing some of it.

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Understanding Investment Risk

Understanding investment risk

 

Informed decisions to improve your chances of achieving your financial goals

If you want to plan for your financial future, it helps to understand risk. If you understand the risks associated with investing and you know how much risk you are comfortable taking, you can make informed decisions and improve your chances of achieving your goals.

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wealth briefing

Wealth briefing

 

Making good choices with your life investments

One of the golden rules of investing is to spread your money across a range of different asset classes. We’ve all heard the expression, ‘Don’t put all your eggs in one basket’. This approach means that if one or more of your investments rise you will benefit but, if they fall, there should be a degree of protection because, hopefully, some of your other holdings in different asset classes will be going up in value.

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