“The key to winning is poise under stress” – Paul Brown
“The key to winning is poise under stress” – Paul Brown
Investing can be a rollercoaster which is frightening for many, and it is not uncommon for market fluctuations to cause stress and anxiety.
However, understanding the nature of investing can help manage these feelings to ensure your investments cause as little stress and anxiety as possible.
This article will give you the key things you need to know to maximise the enjoyment of your investing journey.
Markets are inherently cyclical. They go through periods of growth (bull markets) and decline (bear markets).
If you wake up one day and see your portfolio has dropped by 1%, 3%, or 5%, but then increased by 1%, 3%, or 5% the next day (or higher / lower), do not worry. Behaviour such as this is normal.
Understanding that these cycles are normal and inevitable can help reduce stress.
The good news is that, historically speaking, markets have trended upwards over the longer-term.
Naturally, past performance is not indicative of future returns, but it can be re-assuring for short-term anxiety and stress.
Remember, investing is a marathon, not a sprint.
Constantly checking your investments can lead to unnecessary stress. Short-term market fluctuations can be misleading and may prompt impulsive decisions.
It is easy to become worried if your investments fall for one continuous week (or more), but if your time horizon is in another few years (which it hopefully is!), take time to breathe and relax.
Instead of constantly checking your investment value, set periodic reviews of your portfolio. This approach allows you to stay informed without becoming overwhelmed by daily market movements.
If you are involved in investing, you will hopefully have been told that your investments can go down.
Accepting that investments can lose value is critical. Markets will have ups and downs, and no investment is risk-free.
By understanding this, you can better prepare mentally for potential losses.
Investing can be stressful, but understanding market cycles and adopting a long-term perspective is key to managing stress and anxiety from your investments.
In addition, having a trusted Patterson Mills Financial Planner to help you navigate your investment journey can provide much needed peace of mind, especially in periods of low (or even negative) growth.
Get in touch with us today and book your initial, no-cost and no-obligation meeting. There has never been a better time to secure your financial future with Patterson Mills.
Send us an e-mail to contactus@pattersonmills.ch or call us direct at +41 21 801 36 84 and we shall be pleased to assist you.
Please note that all content within this article has been prepared for information purposes only. This article does not constitute financial, legal or tax advice. Always ensure you speak to a regulated Financial Adviser before making any financial decisions.
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