Mark Zuckerberg
Your client invested and now markets are volatile. Depending on the way the money is invested (lump-sum investment or ongoing regular payment), there are different options to think about.
If you don’t need your money right this instant, you have no reason to fear market fluctuations.
Long-term price trends: Your client has a long-term investment horizon. Losses have almost always been made up in the past.
Professional management: You have everything under control and react calmly to market fluctuations.
Broad diversification: A blend of various asset classes can cushion individual losses.
Long-term price trends: Your client has a long-term investment horizon. Losses have almost always been made up in the past.
Professional management: You have everything under control and react calmly to market fluctuations.
Broad diversification: A blend of various asset classes can cushion individual losses.
Investors react emotionally and do not always make the right decisions. Emotionally driven decisions can have undesirable consequences. Watching the video, you may know these feelings. Explain your clients to try not to be influenced by them.
If your clients get out, they run the risk of missing the right time to get back in. Better to stay the course and take advantage of every price rise. If they stay invested they will suffer losses from price decreases, but they have the opportunity to benefit from the days with the strongest gains. Check out what happened to investors with different strategies.
If your client invests in a single asset class, he could have good luck or bad luck. What works well one year could perform badly the next. A combination of various asset classes produces losses less often and enhances the opportunities for returns.
If your clients save from month to month and don’t need your assets right now, they have the time to make up losses.
Long-term price trends: Your client has a long-term investment horizon. Losses have almost always been made up in the past.
Fund savers are well placed: Fund savers buy more units when prices fall and so can get back in the black faster.
Broad diversification: The blend of asset classes can cushion individual losses.
Long-term price trends: Your client has a long-term investment horizon. Losses have almost always been made up in the past.
Fund savers are well placed: Fund savers buy more units when prices fall and so can get back in the black faster.
Broad diversification: The blend of asset classes can cushion individual losses.
A look at the long-term performance of the worldwide equity market. shows that markets are always fluctuating. Yet in retrospect the general long-term trend has been upwards. So, if your client has taken a long-term view, there’s no reason to get upset over temporary price declines.
By investing the same amount on a regular basis your client buys fund units at various prices. When prices go up, he/she gets fewer units; when prices go down, he/she gets more units. So in a normally fluctuating market environment, your client benefits from a favorable average purchase price for your units (the so-called “cost-average effect”). Of course, timing is very important when selling your units.
If your client invests in a single asset class, he could have good luck or bad luck. What works well one year could perform badly the next. A combination of various asset classes produces losses less often and enhances the opportunities for returns.
This information contained herein is solely for educational purposes and should not be relied upon as a forecast, research or investment advice and is not a recommendation to adopt any investment strategy. #687166. December 2018
