What should you do when stock markets hit a speed bump?
Some investors become fearful and take their money out. Others wait on the sidelines until the outlook becomes clearer. Why put in money or stay invested when stock prices could fall further, you may ask?
Don’t worry it is the nature of stock markets to move up and down, which is not in our hands to have control over it. A stock market fall is not a permanent thing, and this is not end of the world. The stock market and Government lawmakers will continue to be unpredictable. Trying to predict their movement is hard, if not impossible. And markets often do the opposite of what you think they should.
Don’t be hasty with your investments by doing what everyone around is doing. After all, what works for others may not work for you. Currently we see shares are falling substantially, resulting in certain shares trading far below their realistic fair Value. Recognizing opportunities where others see risks is what separates great investors from good ones. So your best bet is to stay the course, even during periods of volatility.
Research suggests that a Systematic investment approach is often more profitable than one in which human judgment is allowed to play a role. This is where the Systematic Investment Plan (SIP) comes in.
The great thing about an SIP is you fix the amount you want to invest; you decide where you want to invest; and you can stop and re-start the plan at any time. It's not a magic solution but it can help you avoid a lot of the common investment mistakes.....
Some investors become fearful and take their money out. Others wait on the sidelines until the outlook becomes clearer. Why put in money or stay invested when stock prices could fall further, you may ask?
Don’t worry it is the nature of stock markets to move up and down, which is not in our hands to have control over it. A stock market fall is not a permanent thing, and this is not end of the world. The stock market and Government lawmakers will continue to be unpredictable. Trying to predict their movement is hard, if not impossible. And markets often do the opposite of what you think they should.
Don’t be hasty with your investments by doing what everyone around is doing. After all, what works for others may not work for you. Currently we see shares are falling substantially, resulting in certain shares trading far below their realistic fair Value. Recognizing opportunities where others see risks is what separates great investors from good ones. So your best bet is to stay the course, even during periods of volatility.
Research suggests that a Systematic investment approach is often more profitable than one in which human judgment is allowed to play a role. This is where the Systematic Investment Plan (SIP) comes in.
The great thing about an SIP is you fix the amount you want to invest; you decide where you want to invest; and you can stop and re-start the plan at any time. It's not a magic solution but it can help you avoid a lot of the common investment mistakes.....
