{"id":274,"date":"2020-04-29T07:00:45","date_gmt":"2020-04-29T06:00:45","guid":{"rendered":"http:\/\/www.a1-financial.com\/blog\/?p=274"},"modified":"2020-04-22T16:25:33","modified_gmt":"2020-04-22T15:25:33","slug":"focus-on-long-term-horizons","status":"publish","type":"post","link":"https:\/\/www.a1-financial.com\/blog\/focus-on-long-term-horizons\/","title":{"rendered":"Focus on long-term horizons"},"content":{"rendered":"

Time in the market, not timing the market<\/strong><\/p>\n

During this difficult time, fear and worry are understandable, particularly as the coronavirus (COVID-19) outbreak led to the biggest daily drop in the FTSE 100 since the financial crisis of 1987. Trying to second-guess the impact of events such as the coronavirus or the recent stock market volatility \u2013 or even attempting to make a bet on them \u2013 rarely pays off. Instead, investors who focus on long-term horizons \u2013 at least five to ten years \u2013 have historically fared much better.<\/p>\n

We all have different objectives in life and need different strategies to help achieve them. Sensible diversification \u2013 owning a mix of assets, including shares, bonds and alternative investments such as property \u2013 can help protect investors over the long term. When one area of a portfolio underperforms, another part should provide important protection.<\/p>\n

Risk tolerance and time horizon<\/strong><\/p>\n

If you have a well-diversified portfolio, then it\u2019s more important than ever to stay the course. You have a strategy in place that reflects your risk tolerance and time horizon, so remain committed. This will help you navigate through periods of uncertainty when some investors are panicking or acting out of fear. Volatility is not all bad, as long as you are prepared to take advantage of the unique opportunities it brings.<\/p>\n

In volatile markets, it is perfectly normal for investors to become nervous, question their investment approach and concentrate on the potential for short-term losses over their longer-term investment strategy. Be aware of the psychological effect this type of volatility has on you as an investor, and resist the urge to be reactive.<\/p>\n

Proper diversification and perseverance<\/strong><\/p>\n

It\u2019s important to understand that this movement is not all bad for investors. Some commentators may talk about volatility as detrimental to markets and investors, but fail to mention the opportunities that arise for investors during periods of market volatility.<\/p>\n

No one knows how severe any market turbulence will be or what the markets will do next. It could be over quickly or become more protracted. However, no matter what lies ahead, proper diversification and perseverance over the long term are very important.<\/p>\n

Ups and downs of different types of market conditions<\/strong> <\/p>\n

It\u2019s likely that the coronavirus will continue to have an impact on markets over the coming months and even years. However, major events causing markets to fall, particularly in the short term, is something we\u2019ve seen time and time again. And it doesn\u2019t mean that markets won\u2019t recover. History shows again and again that the ups and downs of different types of market conditions are part and parcel of investing.<\/p>\n

The key is to remain calm when stock markets fall. Don’t panic. Don’t frantically sell. If you can avoid it, don’t even log into your investment account. At moments like this, the skills and experience of professional financial advisers come into their own. Not only do we have the experience of dealing with different types of market conditions, but we can also help to take the emotion out of your decisions.<\/p>\n

Life\u2019s full of surprises<\/strong><\/p>\n

Whatever your level of confidence, we could help you make better-informed investment decisions. If you would like to find out more or require any further information, please contact A1 Financial Solutions on 0131 347 8855 or email info@a1-financial.com.<\/p>\n

INFORMATION IS BASED ON OUR CURRENT UNDERSTANDING OF TAXATION LEGISLATION AND REGULATIONS. ANY LEVELS AND BASES OF, AND RELIEFS FROM, TAXATION ARE SUBJECT TO CHANGE.<\/strong><\/p>\n

THE VALUE OF INVESTMENTS AND INCOME FROM THEM MAY GO DOWN. YOU MAY NOT GET BACK THE ORIGINAL AMOUNT INVESTED.<\/strong><\/p>\n

PAST PERFORMANCE IS NOT A RELIABLE INDICATOR OF FUTURE PERFORMANCE.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Time in the market, not timing the market During this difficult time, fear and worry are understandable, particularly as the coronavirus (COVID-19) outbreak led to the biggest daily drop in the FTSE 100 since the financial crisis of 1987. Trying to second-guess the impact of events such as the coronavirus or the recent stock market… Read more »<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"_links":{"self":[{"href":"https:\/\/www.a1-financial.com\/blog\/wp-json\/wp\/v2\/posts\/274"}],"collection":[{"href":"https:\/\/www.a1-financial.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.a1-financial.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.a1-financial.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.a1-financial.com\/blog\/wp-json\/wp\/v2\/comments?post=274"}],"version-history":[{"count":1,"href":"https:\/\/www.a1-financial.com\/blog\/wp-json\/wp\/v2\/posts\/274\/revisions"}],"predecessor-version":[{"id":275,"href":"https:\/\/www.a1-financial.com\/blog\/wp-json\/wp\/v2\/posts\/274\/revisions\/275"}],"wp:attachment":[{"href":"https:\/\/www.a1-financial.com\/blog\/wp-json\/wp\/v2\/media?parent=274"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.a1-financial.com\/blog\/wp-json\/wp\/v2\/categories?post=274"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.a1-financial.com\/blog\/wp-json\/wp\/v2\/tags?post=274"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}