Share marketing investing tips
Don’t Panic
Share market investors are advised not to panic when markets are down according to a financial expert on the radio this week.
Your shares or your mutual fund/managed fund/kiwisaver may be down but to sell shares now when the price is lower or to transfer money from growth or balanced funds to a conservative fund would be to lock in losses and you will miss out on the gains when the markets bounce back.
Always remember that when the markets are down you will get more shares for your money so it is a good time to buy.
It is also a time to review your strategy now and again not because the markets are down but because of changing circumstances.
If you are young you have time on your side which means that you are able to invest in growth funds and take a long-term view of your investments. There is more time to recover from financial setbacks when you are young.
Having said that, the older generation shouldn’t just invest in low risk low return funds without giving much thought to when they will actually require that money.
That is the most important factor, not time.
If you require the money within six months then investing in growth funds may not be the best option because the markets may be down at the time that you require the money.
It all becomes a balancing act, but with a cool head you can ride this latest storm out and take advantage of the next bull market which comes along.
Please note: This is the opinion of the writer. If you require professional financial advice see your advisor.
