The Coronavirus pandemic caused stock markets around the world to tumble back in March – but since then, there seems to have been steady progress towards recovery. Markets have regained much of the value lost.
But if you have been affected by the ups and downs of the markets, is it now time to take a fresh look at investing – to recover what you may have lost, or seize a potential opportunity to profit from the recovery?
Investors are coming back
The coronavirus outbreak has meant financial turmoil, with some experts predicting a global downturn in the wake of three months of stagnation.
But despite the worries, investment platforms are reporting a boom. Investment platforms, are web-based services that allows investors to buy and hold a range of funds from a host of fund management companies together in one portfolio. Many have seen a major increase in the numbers of new investors signing up and putting down cash.
It seems likely that some could be looking to pick up shares in a depressed market to hopefully benefit from the recovery. It seems that many adventurous investors have looked at the falls earlier this year, and seen the volatility as an opportunity, helping to boost market confidence, and prices.
Is this a great opportunity?
It may look as though buying shares when the market is low could be a guaranteed way to make money fast. But the fact is that there are no guarantees when it comes to investments.
At Continuum, we believe that if you are ready to take a fresh look at investment, the way to do it is not with a short-term opportunist approach, but with a long term investment strategy based on proven principles.
At Continuum we work with clients to create long term investment strategies, rather than try to pick stocks which may seem to be shooting up – but can be just as likely to nosedive.
Investment designed around you
A successful investment strategy must be individual, and reflect your current resources, your future plans and your timescales, and your attitudes to risk. It will help you build a balanced portfolio and let you invest with confidence, because it will determine the markets and sectors you need to look into, which shares you need to hold – and the most cost effective ways to hold them.
You need an investment strategy that reflects the market – but is also designed around your resources, attitudes and goals.
We can work with you to help you build an investment strategy that is unique to you, but it will be founded on some common principles.
Most important of all is to invest for the long haul. Investing for a minimum of five years and preferably for much longer can smooth out volatility, and let the underlying growth of the market work for you. Time is money. The longer your investment has to grow, the greater the returns can be.
You also need diversified investments. Never put all your investment eggs in one basket. When one market dips, another asset class may be rising, hopefully covering your losses.
You also need to be comfortable with the risk. As a general rule the higher the potential returns the higher the risk. Your portfolio needs to reflect the level of risk you are comfortable with, understanding that more opportunity for profit always means greater potential risk.
Getting some expert help
Whether or not you are new to investing, it can help to have an expert on your side. We can use these principles to create an investment strategy and build a portfolio designed to help you reach your financial goals – whatever they may be.
A call to us now can give you individual support from an advisor who will work to help you use the market, whatever direction it may take, by planning the style of investment portfolio you need.
The information contained in this article is based on the opinion of Continuum and does not constitute financial advice or a recommendation to suitable investment strategy, you should seek independent financial advice before embarking on any course of action.
The value of investments can fall as well as rise and you may get back less than you invested.
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