Every day it seems like the world is interconnected. If you watch any financial television channel or read the news online, you are most likely aware of how events in one country seem to have an ever-increasing effect on other countries around the world.
Since the outbreak of the COVID-19 coronavirus – and more recently the Russia-Ukraine conflict, which has led to disruption in share markets- many people have felt concerned about their financial futures.
Whether you’re an experienced investor or just starting to learn more, a downturn in the market can be stressful. The good news is that history has generally shown that these downturns come and go, and markets generally rebound over time.
If you are a savvy investor, you can watch the downturns and know that it’s important to focus on your long-term goals.

Now, let’s talk about some tips that might help you stay focused on your long-term objectives during a downturn

AVOID MAKING REACTIVE DECISIONS BASED ON SHORT-TERM EVENTS

Markets tend to rise and fall, so, every few years, there will be a period of negative returns. During these times, it’s even more important to think carefully before making changes to your investment plan. If you take your money out of an investment when the markets gave fallen, you may lock in this loss. You could also risk missing out on any positive returns should the market recover.

However, if you hold onto your investment over the long term, you may be more likely to recover from the low points and perform better than those who try to time their buying and selling of assets based on short-term returns.

LOOK BACK AT HOW MARKETS HAVE RECOVERED

May events of the past years have had an enormous impact on financial markets. Markets suffered as investors became nervous about its impact, but history shows that markets recovered over time.
Despite the recent downturn in the market due to COVID-19, the long term returns on investment plans remain positive.

FOCUS ON YOUR LONG-TERM GOALS
Think carefully before making changes to your super or investments, as fluctuations in the market are a normal part of an investment cycle.

KEEP MAKING CONTRIBUTIONS
Even during a downturn, it’s important to continue building your retirement savings to help you stay on track with your long-term objectives. Investing during a downturn could mean that you invest when unit prices are low, so you’ll benefit if the prices rise later as a result of a rebounding market.

GET PROFESSIONAL ADVICE
Rather than building your own nest egg, a qualified adviser can help you understand the best approach to help you get the best results. TALK TO US NOW!