What Is a Volatile Investment Market ?
You may have heard the market described as being volatile, and you’re probably wondering what that actually means.
Volatility is a measure of the rate and magnitude of price changes over time. If the price fluctuates rapidly in a short period, hitting new highs and lows, it is said to have high volatility. If the price moves higher or lower more slowly, or stays relatively stable, it is said to have low volatility.
A volatile Investment market is an investment term that describes when a market or security experiences periods of unpredictable, and sometimes sharp, price movements.
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There are a variety of reasons why volatile markets happen. The three most common reasons are political and economic factors, industry and sector factors, and company performance.
Political and economic factors can include changes in government policy, interest rates, unemployment rates, and inflation rates. Industry and sector factors can include changes in technology, consumer trends, and competitive landscape. Company performance can include earnings reports, management changes, and news events.
When saving for the future, it’s important to have both short-term and long-term goals in mind. This will help you stay disciplined when the markets are volatile, which they are bound to be at some point or another.
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Here are five steps to help you navigate a volatile investment market:
When you have a plan and are diversified, you are more likely to stick to your investing goals. This is because you will have a clear idea of what you are doing and why you are doing it.
It can be difficult to stay disciplined when the markets are volatile. However, if you have a plan and are diversified, you are more likely to stick to your goals.
Trying to time the market is a losing proposition. Instead, focus on your long-term goals and stay diversified.
There will be times when the markets are volatile and your investments will lose value. However, if you are diversified and have a long-term perspective, you will be better able to weather these bumps.
Rebalancing your portfolio is important when the markets are volatile. This helps you maintain your desired level of risk and keep your portfolio diversified.
Important: The information and opinions in this article are for general information purposes only. They should not be relied on as professional financial advice. Readers should seek independent financial advice that is customised to their specific financial objectives, situations & needs. This advertisement or publication has not been reviewed by the Monetary Authority of Singapore.
Valerie sees herself as a professional financial builder, assisting clients to turn their dreams into a reality and built up strong financial houses. She loves to communicate with people, exchange ideas and through that process; improve and enhance their financial house.
In today’s era, she is aware that clients are often overloaded with information from different media. Leaving them feeling lost and confused in the financial jungle. She believes the pivotal points are providing clients with reliable financial information and simplify their decision-making process.
Coming from a humble family, she has seen how financial planning has empowered her own life. She believes financial planning done right can transform her respective clients’ family and their lives positively. The greatest achievement for her is seeing her clients under her care, over the years have access to more. With a robust financial health to weather them through alterations in market conditions.
“Financial fitness is not pipe dream or a state of mind it’s a reality if you are willing to pursue it and embrace it.”
― Will Robinson
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