Is there a perfect time to invest in the market?

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Published on 2022-09-19 at 09:52
Attempting to time the market has been proven to be a foolish idea time and time again. It could even cost you a lot of money. When it comes to investing, a long-term, diversified strategy is far more likely to result in positive returns than chasing short-term gains.

Given ongoing global economic uncertainties, the rise in the cost of living and recent stock market volatility, many individuals are wondering if now is a good time to invest. The short answer is yes. The wisest plan is to invest and take a long term view, rather than worrying about what is going on in the markets today. If you have capital available to invest, then trying to time the market is the worst strategy you can employ. 

In this piece by our partner Holborn, you will learn more about the risks of trying to time the market and the importance of diversifying your investment portfolio. 

What are the Risks of Trying to Time the Market? 

Predicting the peaks and troughs of the market is impossible. Markets can move in either direction unexpectedly and very quickly – this is often the result of an external event that triggers mass buying or selling of assets – a recent example being the outbreak of conflict in Ukraine. Those waiting for the bottom of the market will find that inevitably, this is only known after the event. 

Rather than trying to time the market, you should consider whether investing is right for you. Attempting to time buying and selling frequently results in in higher costs of trading. 

To be successful, and investor would need to foresee both the best time to buy and the best time to sell. This simply isn't possible and even the most experienced investors don't get this correct. 

While staying invested during market fluctuations may be unsettling, having discipline usually yields greater long-term results than pursuing short-term gains.

What Exactly is the Importance of Diversification? 

Diversification is about managing risk through investing in a range of different assets around the world – assets most commonly used are cash, shares (equities) bonds and property. A well diversified portfolio will provide access to different geographical regions and sectors of the market.  Any portfolio should reflect your attitude to investment risk and meet your long term goals. 

A truly Independent Financial Adviser can help you to construct a portfolio tailored to your specific situation and will provide an ongoing review service to ensure that your portfolio performs well over time and remains suitable. 

How to Establish a Suitable Investment Portfolio

When it comes to investing, it's critical to consider your situation, income requirements, goals, and time horizon, as well as your tolerance to risk. It is best to work with a fully Independent and well qualified adviser who can construct a diversified portfolio with the appropriate risk and return characteristics to provide you with peace of mind.

Regardless of current economic conditions, a long-term, diversified investment strategy is essential for safeguarding and growing your portfolio. Your adviser should review your investment portfolio regularly with you, to ensure its ongoing suitability.

Conclusion 

Your arrangements for your life abroad should be structured as tax-efficiently as possible. To ensure you are making the most of the tax efficient options available, speak with an Independent Financial Adviser that is well-versed in cross border Financial Planning. 

The Content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice. Nothing contained in this report constitutes a solicitation, recommendation, endorsement, or offer by HOLBORN or any third-party service provider to buy or sell any securities or other financial instruments in this or in in any other jurisdiction.

Financial products carry a level of risk and can result in the loss of your funds. You should never invest money that you cannot afford to lose.

Holborn Assets Wealth Management (CY) Ltd, authorised by the Cyprus Securities & Exchange Commission (CySEC) License number 394/20, passported throughout the EU/EEA.