Key investment advice
Predicting stock market moves in the short term is difficult.
Equity markets have risen significantly over the last 9 years and most commentators are predicting modest growth expectations for investors, compared to those since 2008.
Some investors and pension investors are currently asking, "should we remain invested or should I hold off until this current volatility plays out?"
Over the short term, stock markets are rarely smooth, instead they can experience extreme turbulence and investor behaviour can be unpredictable.
Why remain invested?
Having now worked in the investment business for over 20 years - the biggest mistake is attempting to time the ups and downs of the stock market.
Data relating to the performance of the S+P 500 - the Standard & Poor's 500, often abbreviated as the S&P 500, is an American stock market index based upon the market capitalisation of 500 large companies having common stock listed on the New York Stock Exchange (NYSE) or (NASDAQ). S+P 500 - from 1996 to 2015 ( 20 years of stock market data):
A "buy & hold" strategy would have yielded average total return of c.8.20% per annum
Missing 10 best trading days average total return reduced to c.4.50% per annum
Missing 20 best trading days average total return reduced to c.2.10% per annum
Missing top 30 trading days average total return reduced to c. zero %
Source: Schwab Centre for Financial Research with data from Standard & Poor's.
Key investment advice
Consult with a trusted financial planner. Discuss your short term/longer term goals, your appetite for risk and current/projected financial position.
Diversify your core portfolio between different asset classes
Get invested sooner rather than later.
Fees and charges. Understand how they impact your investments, savings and pension fund.
Want to know more? We are available to discuss your options, and we look forward to hearing from you.
Our job is to help you choose a product and structure that will help you meet your goals.
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