Corrections can be healthy and result in even stronger growth in the future, although this isn\u2019t guaranteed and you could get back less than you invest. This is why holding a diversified portfolio for the long term makes good investing sense. It\u2019s time invested in the market, and not the timing of the market, which dictates long-term returns.<\/p>\n
Missing out on opportunities<\/strong> Such volatility is less frightening if you take a longer-term view. It\u2019s important to stick to your strategy and keep moving ahead consistently by spreading risk and growing your wealth. It\u2019s volatility in stock markets that make investors nervous. But on the flipside, not all volatility is bad: without volatility, stock prices would never rise.<\/p>\n Avoid being blown off course<\/strong> Trying to second-guess the impact of events such as a global trade war, Brexit or a stock market correction, and tariff concerns or fears that earnings will continue to disappoint \u2013 or even attempting to make a bet on them \u2013 rarely pays off. Instead, investors who focus on long-term horizons (at least five to ten years) have historically fared much better.<\/p>\n Considered and strategic approach<\/strong> Volatility, risk and market declines are a normal part of the investing cycle, but the media likes drama. Reports will use words that make these market fluctuations sound alarming, so be cautious about reacting to the unnerving 24\/7 news cycle.<\/p>\n Reflecting risk tolerances and timelines<\/strong> Be aware of the psychological affect this type of volatility has on you as an investor, and resist the urge to be reactive. The recent decline was expected and is coming after financial markets as a whole have experienced a historic bull phase for close to ten years now. No one knows how severe any market turbulence will be or what the market will do next. It could be over quickly or linger for a while. But no matter what lies ahead, proper diversification and perseverance over the long term are what\u2019s most important.<\/p>\n","protected":false},"excerpt":{"rendered":" Relentless and continual rise in value over the very long term, punctuated by falls There is an undeniable correlation between geopolitics, market sentiment and the macro trading environment. But over long periods, we have seen markets recover from downturns, although past performance is no indicator of future performance.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[],"_links":{"self":[{"href":"https:\/\/www.ashleighcourt.com\/news\/wp-json\/wp\/v2\/posts\/2466"}],"collection":[{"href":"https:\/\/www.ashleighcourt.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.ashleighcourt.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.ashleighcourt.com\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.ashleighcourt.com\/news\/wp-json\/wp\/v2\/comments?post=2466"}],"version-history":[{"count":0,"href":"https:\/\/www.ashleighcourt.com\/news\/wp-json\/wp\/v2\/posts\/2466\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.ashleighcourt.com\/news\/wp-json\/wp\/v2\/media?parent=2466"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.ashleighcourt.com\/news\/wp-json\/wp\/v2\/categories?post=2466"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.ashleighcourt.com\/news\/wp-json\/wp\/v2\/tags?post=2466"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\nThe relentless and continual rise in value over the very long term is typically punctuated by falls. It\u2019s important not to let global uncertainties affect your investment strategy for the years ahead. Individuals who stop investing, particularly during market downturns, can often miss out on opportunities to invest at lower prices.<\/p>\n
\nIn practice, everyone\u2019s investment goals are different. By deciding on your long-term financial priorities \u2013 whether it\u2019s funding your children\u2019s education or saving enough to be able to retire early \u2013 you can avoid being blown off course by short-term events.<\/p>\n
\nSensible diversification \u2013 owning a mix of assets, including shares, bonds and alternative investment such as property \u2013 can help protect investors over the long term. When one area of a portfolio underperforms, another part should provide important protection \u2013 and it\u2019s never too early or too late to start taking this considered and strategic approach.<\/p>\n
\nIf you have a well-diversified portfolio, then it\u2019s more important than ever to stay the course. You have a strategy in place that reflects your risk tolerance and timeline, so stay committed. However, if you reacted and sold in a previous market decline or have not implemented a strategic asset allocation, then now is the time to have a discussion about your investment options.<\/p>\n