Surviving Market Volatility
Avoid taking needless losses and missing out on significant gains
The market volatility of the last few months has reminded equity investors that the path to inflation beating returns is not always a smooth one. Tales of doom in the media, as well as falling valuations can be unnerving even to the most seasoned investor.
It is tempting for nervous investors to make short-term moves out of uncertain markets and plan to re-enter when things are calmer. However, it is very difficult to time the moves out of and back into the market, and you could end up taking needless losses and missing out on significant gains.
During times of market volatility it is important to focus on long-term investment goals. To assist, please find below a range of information on the reasons for market volatility, and why equity markets reward long-term, patient investors.
Time not timing: the key to successful investment
investing for the long-term, rather than trying to predict market movements, is the key to meeting your investment goals.
Why equities make sense
the performance of the UK stock market illustrates the ability of equities to survive short-term fluctuations and generate long-term rewards.
Turning market volatility to your advantage
regular investing can reduce concerns over the timing of investments and minimise the impact of market volatility.