<\/p>\n
It\u2019s important to stick to your strategy and keep moving ahead consistently by spreading risk and growing your wealth for the long term.<\/p>\n
Higher inflation and faster interest rate rises<\/strong> The Bank of England seemed to offer support for the view that rates in general are on an upward path with a strengthening UK economy, meaning interest rates are likely to rise sooner than the markets were expecting.<\/p>\n More attractive investment alternatives <\/strong> In practice, everyone\u2019s investment goals are different. By deciding on your long-term financial priorities \u2013 whether it\u2019s funding your children\u2019s education or saving enough to be able to retire early \u2013 you can avoid being blown off course by short-term events.<\/p>\n Investors should focus on long-term horizons <\/strong> Sensible diversification \u2013 owning a mix of assets, including shares, bonds and alternative investment 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 \u2013 and it\u2019s never too early or too late to start taking this considered and strategic approach.<\/p>\n Media frenzy<\/strong> Stay strategic<\/strong> Stay calm<\/strong> Stay focused <\/strong> THE VALUE OF INVESTMENTS AND INCOME FROM THEM MAY GO DOWN. Don\u2019t let current global uncertainties affect your financial planning It\u2019s important not to let current global uncertainties affect your financial planning for the years ahead. People who stop their investment planning, particularly during market downturns, often miss out on opportunities to invest at lower prices.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[224],"tags":[],"_links":{"self":[{"href":"https:\/\/www.a1-financial.com\/financialnews\/index.php?rest_route=\/wp\/v2\/posts\/2262"}],"collection":[{"href":"https:\/\/www.a1-financial.com\/financialnews\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.a1-financial.com\/financialnews\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.a1-financial.com\/financialnews\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.a1-financial.com\/financialnews\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=2262"}],"version-history":[{"count":0,"href":"https:\/\/www.a1-financial.com\/financialnews\/index.php?rest_route=\/wp\/v2\/posts\/2262\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.a1-financial.com\/financialnews\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=2262"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.a1-financial.com\/financialnews\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=2262"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.a1-financial.com\/financialnews\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=2262"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\nAt the time of writing this article in February, markets had reacted to the signs of faster wage growth and a strengthening US economy that may lead to higher inflation and faster interest rate rises. The global sell-off began following a solid US jobs report that fuelled expectations that the Federal Reserve would need to raise interest rates faster than expected because of the strength of the economy. That concern prompted the pullback from stocks.<\/p>\n
\nA government budget proposal announced by US lawmakers to raise spending caps could also fan inflationary pressures. Rising US bond yields are another possible signal of higher rates to come, which could impact on corporate profits and curb economic activity. But at the same time, higher interest rates can make investment alternatives to stocks, such as bonds, more attractive.<\/p>\n
\nTrying to second-guess the impact of events such as Brexit or the recent stock market correction \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 \u2013have historically fared much better.<\/p>\n
\nVolatility, risk and market declines are a normal part of the investing cycle, but the media likes drama. Reports will use words that make these market fluctuations sound alarming, so be cautious about reacting to the unnerving 24\/7 news cycle.<\/p>\n
\nIf 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 timeline, so stay committed. However, if you reacted and sold in a previous market decline or have not implemented a strategic asset allocation, then now is the time to have a discussion about your investment options.<\/p>\n
\nBe aware of the psychological affect this type of volatility has on you as an investor and resist the urge to be reactive. The recent decline was expected and is coming after financial markets as a whole have experienced a historic bull phase for close to ten years now.<\/p>\n
\nNo one knows how severe any market turbulence will be or what the market will do next. It could be over quickly or linger for a while. But no matter what lies ahead, proper diversification and perseverance over the long-term are what\u2019s most important.<\/p>\n
\nYOU MAY NOT GET BACK THE ORIGINAL AMOUNT INVESTED.<\/p>\n","protected":false},"excerpt":{"rendered":"