On the eve of the General Election, it’s perhaps apt to be talking about stock market fluctuations. The market may lurch one way or the other when they open on Friday morning. Who knows, and really, does it matter that much?
Some economists think the global economy may be on the verge of recession – and that possibility may be another reason to be wary of how markets may behave. An article we read recently, (that we have linked to at the bottom here), suggests that those who try to time their market activity do no better than would be expected by chance alone. In other words, out thinking the market is a losing game.
The good news for investors is you can have a rewarding investment experience without trying to outguess the market. But you may need to alter to a more long-term view about investing. That is what we advocate at Fryer Glass.
Investors are better advised to alter the way they think, as opposed to how they act. For example, in the nearly 100 years of data, the U.S. stock market has returned 10% per year on average, though it has rarely returned that in any individual year.
If you’re concerned about the possibility that the next downturn is just around the corner, and you’re tempted to try and head it off – consult with a financial adviser who may be able to put you at ease. Sometimes doing nothing is actually doing something—think of all those people who sold out of the market in 2008 and missed the last 11 great years for equities.
The article has been written for an American readership, but the over-arching points are universally applicable.
If you are considering your investment options and want to obtain independent financial advice, contact Mark Fryer at Fryer Glass on 01276 301103 or email [email protected]