market volatility
Stay updated on market news and developments but resist the urge to overreact to short-term fluctuations. Avoid making impulsive decisions based on emotions or sensational headlines. A calm and rational approach to market information is essential for sound decision-making.
In the absence of an appointed multi-manager, a financial advisor and client would need to meet on at least an annual basis to select underlying funds, make changes to asset allocation, and re-balance the portfolio.
Diversification is the cornerstone of portfolio construction and is based on the principle ‘don’t put all your eggs in one basket’. Diversification is a management tool that allows investors to spread investments to avoid hedging their bets on a single
Humans are emotional beings which is generally a good thing – except in the context of investing. Market volatility can wreak havoc with our emotions and lead us to make irrational decisions based on greed and fear rather than on
Investment markets are by nature volatile and accepting short-term fluctuations is an investment fundamental. Markets move in cycles through peaks and troughs and, as an investor, you need to be emotionally prepared to confront this reality without becoming fearful.
Whether it’s dumping shares, stocking-piling toilet paper or sipping bleach, greed and fear can drive seemingly rational people to make irrational decisions, especially in times of crisis.
Many people shy away from investing because they believe it is akin to gambling and the risks are too high. There is a common misconception that, because investment markets are volatile by nature, investing in equities represents a higher risk
