Successful Investing In Volatile Times
by Chariot Tan | 8 April 2022 | 12 mins read
One way to handle volatility is to be patient
This means staying invested and not reacting to short-term fluctuations. Let’s delve into the four important strategies to cope with unpredictability: Having a plan, understanding volatility, having a bit of a contrarian mindset and staying focused on long-term returns.
First things first, volatility or not, you should already have a plan. Not just any plan, but one that is highly strategic and regularly reviewed to ensure you are on track to meeting your financial goals.
Try to look at the bigger picture to quell your impulse to sell out
Still feeling doubtful? The below chart shows the last 90 years of market history, in both moments of high and low volatility.
Source: VisualCapitalist
Insights into how investors should deal with market volatility by Asia Advisers Network
During the course of my profession, I have seen many investors assuming the wrong barometer of risk – equating falling prices and increasing price volatility with rising levels of risk. This eventually led to them selling high-quality investments simply because they were falling and facing with the prospect of further declines while holding on to low-quality investments in the hopes that they would break even someday.
If investors believed in the strategy three months ago, why mistrust it now?
Technically speaking, volatility is merely a statistical measure of the dispersion of returns over a specific timeframe. Instead of focusing on the price fluctuation of their investment portfolio, which represents volatility and uncertainty more than anything else, investors would be better off focusing on the underlying business reality of their investments.
Read the entire article: https://www.asiaadvisersnetwork.com/Article/aid/79644/Investing-in-volatile-times
Article by Chariot Tan
Chariot Tan is a dynamic and visionary leader who enjoys building infrastructures, systems, teams and environments where people can achieve their best. He has transformed both profit and non-profit organizations from ground zero into multi-million dollar enterprises.
DISCLAIMER: The contents including images, videos, audio and written texts found on the author’s social media page and other platforms does not constitute a research report and it does not have regard to the specific investment objectives, financial situation and particular needs of any specific recipient of this message. All material and content are strictly for informational purposes only. The contents posted should not constitute financial or investment advice and should not be considered as an offer, or solicitation, to deal in any of the securities or investment instruments mentioned in this message. The author may, from time to time, own or have positions in any of the securities mentioned or referred to in his content or any securities related thereto and may from time to time add to or dispose of or may be materially interested in any such securities. All thoughts are the author’s own.
Knowing where to start
Starting out on a clean slate with financial planning can be a daunting one, but there is always somewhere to start if you feel hesitant to speak with a financial consultant before doing any research. More often than not, you would already have some form of insurance protection before you know it. Arm yourself with the right information and start your financial planning process right!
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