Markets regularly adjust to changes in economic fundamentals, business cycles and current valuation levels. Stock prices are influenced by interest rates, sensitive to economic growth and steered by company earnings.
Having a financial plan that helps you meet your financial goals for the long term is important. Investing for the long term does not mean you don’t make changes in the short term to address market movements.
Jumping in and out of the market is fraught with costly mistakes for average investor, besides the commission payments. Good investors maintain their stock exposure while making adjustments to their holdings and allocation.
Most investors lack patience, especially younger investors. A Schroders global investor study found that investors tend toward short-term investing, expecting to hold their investments three years on average.
It is prudent to meet with a financial professional to help you proactively plan and implement strategies to achieve your financial goals. These strategies can broaden to tax planning, estate planning and family wealth.