Missing the best 30 days
by AMP Financial
With the recent market volatility, many people are worried about the impact on their investments.
In 2008, we have seen high oil prices, rising interest rates and the
Shares are a growth asset, which tend to provide investors with a bumpy ride, but the potential rewards of sticking to a long term investment strategy can be higher.
When the share market drops it can be tempting to move money out of shares and into more conservative assets such as cash, but it’s important to remember that withdrawing after a negative return may cause you to realise losses.
Transferring funds to a cash type investment may look attractive today. Historically, however, investors who have held their investment during periods of market volatility have tended to perform better in the long term than those who have moved to cash.
In fact, looking at a 10 year period in the share market, missing just the best 30 days in the market could make a significant difference to your end investment.
When thinking about protecting your investments in a volatile market, the key is to remember that markets move in cycles. Although negative returns are disconcerting, it’s important not to panic.
If you’re worried about your investments, you may get some peace of mind from visiting an accredited financial planner who can discuss your situation or put together a strategy that suits you. More information is also available on AMP’s website at www.amp.com.au.
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Any advice given is general only and has not taken into account your objectives, financial situation or needs. Because of this, before acting on any advice, you should consult a financial planner to consider how appropriate the advice is to your objectives, financial situation and needs.
