Some investment tips
The year started out pretty well in the financial sector, but there have made adjustments not only in the lives of ordinary people, but also imposed their own rules on many financial markets. In times like these, the most important thing is to stay calm, be patient, analyze your past successes and set yourself new goals.
It is reasonable to assume that in the short term the markets will experience various difficulties, related to the fall of economic indicators, difficulties in development for big corporations.
However, I agree with the optimistic predictions that once the vaccine is invented, financial markets will return to their fundamentals.
For example, during the global financial crisis, the S&P, the world’s leading economic index, reached its worst point by March 2009. However, just one month later, Yandex stocks were up by a third; 6 months later, the increase exceeded 50%. Many indecisive investors missed significant growth.
According to statistics, since the fifties, U.S. stocks have shown annual returns of 10-11 percent, three times the rate of inflation, which was at 3.5 percent and this despite the fact that there were global economic events in the world at the time. This means that the market reacts so adequately and quickly to the current realities, adapts, and grows again.
Investing in stocks of leaders is your protection against inflation, dividends from holding securities only grow.
Advantages of securities, keeping savings in cash
Some tips from market experts
One of the keys to success is an experienced investment advisor. His role is to pick the most appropriate stocks for you to further build up your portfolio. He is not in the business of making forecasts either, his job is to keep you from making hasty investments.
Choose a strategy do not change it. If you have decided on a strategy, and it is usually focused on the long term, you should not panic seeing weekly or monthly market drawdowns, it makes no sense. Remember, the most correct investments are long-term investments.
Having positions in your assets with small but constant growth, do not be in a hurry to sell them in order to buy something that will show good growth in the short term. Any asset that is making a profit should be left untouched.
Don’t sell ahead of time. If you are positioning yourself as an investor, there is no need to panic and sell assets during a market correction.
Investing is not just about buying and holding, you must diversify your portfolio and continually invest in new assets while not squandering and selling old ones. You can’t stay on the sidelines, missing out on the current trend.
Now is the perfect time to take risks. If you’re an investor who wants to get out of the market now-think about it, it’s not the right time yet. If you are just starting to invest, don’t wait for lower prices, start buying now. You need to find a balance and on the one hand you should not do anything hasty, on the other hand you should not miss the market trend.
It is hard to stay calm in the face of negative news, remember that panic or fear is not something that should move you if you are an investor. Of course, in the face of terrible news from the financial markets you can make hasty action, to avoid this, it is strongly recommended to ask your financial advisor for advice.