We are apparently slightly closer to having an election outcome than we were this time last week, which was prior to the election! All of this uncertainty can have negative impacts on the day to day market movements, and can often lead people into one of two behaviours:
1. Selling their investments out of fear that values will drop further.
2. Delay indefinitely an entry into the market or continued investing.
Here are three lessons to keep in mind after this week's election stalemate:
Investing really is about the long game. We never know with any certainty what investment markets will do, just as we don't often know where life will take us. This is why you need to be prepared for the ups and downs by having a strong basis to your strategy, having based that strategy on what you can control. Remember the rule of thumb: leave your money invested unless you absolutely need it for something.
Diversification is one thing you can control and it's the best friend of an investor when times are volatile. Leave the emotion aside when doing your investing, as increasing the level of emotion will decrease your level of investment intelligence. In politics, if people focused more on the policies and party intentions over the leader's personal likeability we could be in a very different position.
If you'd like an independent review to give you a second opinion on your financial position, please don't hesitate to contact us. We would be happy to work with you to establish a diversified strategy that focuses on the long term and will allow you to roll with whatever is happening around the world.
To take advantage of a Free Independent Financial Review please email Dominique Schuh direct on email@example.com or contact the office on 07 5482 2855.