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Good or Bad Time to Invest? Posted on April 22, 2020
The volatility in the share market has encouraged some new investors to dip their toe in, with the hope of pay off post corona. Investment at these times can be risky, but the right approach can prove worthwhile.
- Be prepared to play the long game – what you invest now needs to ride the wave. How long is long? Years.
- Be prepared for further volatility – Business confidence is very low and shows signs of worsening, despite the government stimulus initiatives. This may be the calm before the storm.
- Diversify amongst sectors – it’s the old ‘eggs in one basket’ rule. Spreading your investment out across companies and industries will benefit your overall return.
- Be wary of the commentary – it is easy to get swept up in public opinion. Make sure you clearly identify between opinion and fact.
- Crouch before you pounce – do your research on both the stocks you want to invest in, and the third-party method you intend to adopt. Wherever possible, seek professional advice from an accredited Financial Planner.
We recommend that your investment strategy be one part of a holistic Financial Plan – a plan that involves your long-and-short-term wealth goals against measured calculations and protection mechanisms.
The information has been prepared without taking into account your personal objectives, financial situation or needs. Before acting on any information in this article you should consider the appropriateness of the information having regard to your objectives, financial situation and needs.