AMP Wealth Management NZ
When investment markets start bouncing around, and especially when they fall, investors can often have a sense of unease or even mild panic. When this happens, it is important to maintain some discipline and ensure you stick to your investment plan.
No-one likes to see their investments lose value when the market has had a large and unexpected fall, but the falls (and the rises) are a normal part of investing. Often, you’ll hear these situations referred to as “Volatility” - which is just a general word to describe how much and how often the market can rise and fall, nothing else. Investment markets that trend up and down more consistently over the long-term very rarely attract attention.
It’s a natural reaction to worry about your money whenever there’s a large movement in the markets, especially when it’s a larger than normal fall. That worry can make you react impulsively e.g. to want to sell down your shares; but that may not be the right thing to do in the long term.
One thing you can do is to make sure you’re well prepared with an investment strategy in place that is well structured to meet your goals and financial situation. Having a plan in place means that when the market does fall unexpectedly you are better equipped to cope with the normal ups and downs of the markets and feel less anxious as a result. This will also mean you’re well placed to take advantage of opportunities as they arise, but more about that later.
So, what can you do to make sure you’re prepared? Here are some guidelines to help: Read more…