Investors should embrace current market volatility to reap the financial benefits
In order for investors to enhance their wealth, they should be building up their portfolios now.
Volatility is rife at present. A number of global financial markets, such as the UK’s FTSE and China’s Shanghai Composite have fallen recently, whilst indices in the U.S. have risen. As such, savvy investors should be using this turbulence to their financial advantage.
As I was quoted as saying in International Adviser and Global Banking and Finance Review, amongst other media, there are two primary reasons why investors should indeed be increasing their portfolios now in order to grow their wealth.
First, the long-term benefits. It’s impossible to accurately predict when the markets will reach the bottom – it could be a month, it could be six months, it could be a year. However, we do know that stock market performance is fairly predictable over the longer-term – they usually go up.
For this reason, investing in equities is recognised globally as one of the optimum ways to accumulate wealth over long periods.
If investors delay topping up and diversifying their portfolios, they’ll miss out on the long-term benefits they could be starting to gain.
Second, are the buying opportunities. The see-sawing markets provide an opportunity for investors to allocate new money into the markets at lower prices. A slump signifies that there are high quality equities available at much more attractive prices.
Naturally, we cannot say for certain what will happen in the immediate future, but with stock markets typically rising over the long-term, the time to capitalise on the prices of decent stocks is now.
As such, I would strongly urge investors to ride the wave of volatility rather than wait for the calmer waters. This will, in turn, lead to longer-term wealth, security and financial freedom.
Investors should embrace current market volatility to reap the financial benefits | Nigel Green https://t.co/mHU9GhJLO2