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.
Photo by Danka & Peter
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.
Photo by Lindsay Henwood
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
By submitting this form, I confirm that
In compliance with the Personal Data Protection Act, Financial Alliance Pte Ltd (“FAPL”) seek your consent to collect and use your personal data (e.g. name, NRIC, contact numbers, mailing addresses, email addresses and photograph) for the purposes of and in accordance with FAPL’s Data Protection Policy, which can be found on FAPL’s website at https://fa.com.sg/data-protection-policy/.
根据《个人数据保护法》，鑫盟理财私人有限公司征求您的同意向您收集并使用您的个人信息。鑫盟理财将根据公司的个人数据保护政策所阐述的用途使用您的个人资料（例如姓名，证件号码，联系电话，邮寄地址，电邮地址和照片）。 该政策可在本公司网站上查寻，网址为 https://fa.com.sg/data-protection-policy/.
By submitting this form, you are deemed to have read and understood FAPL’s Personal Data Policy.
Subscribe to our newsletter to receive updates on our latest content!