AAJ Magazine Vol. 11 Issue 6 Diwali Edition

Page 62

BUSINESS

INVESTMENT PLANNING No one enjoys market volatility but it is an ever present consequent of investing in financial markets. Investors have come to learn that there are several ways to improve upon their investment experience especially when markets become turbulent as they have on numerous occasions the past few years. Regardless of your personality type, lifestyle or comfort level, the investment strategies discussed below will help you navigate through various market environments.Keep emotions in check

During periods of market uncertainty, it is common for some investors to get out of the market or to “park cash� into what they consider to be a safer investment option. Still, the evidence is conclusive that over long periods of time, constant switching between equities and fixed income or between any investments is a gamble. The reason it is a gamble is due to the difficulty that lies in two very important decisions that need to be addressed. The first decision is exactly when to get out of the market. Typically this is a lost cause as once a move is even considered, it is often too late as the 60


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