The Fox, Jessica Brady, talks to Yahoo Finance on how to invest wisely in a volatile market.
Stock markets have moved wildly in the last few months as geopolitical tensions and viral outbreaks spook investors.
In such an environment, experts are urging investors to hang tight and take advantage of the rises and falls.
“A lot of people are quite scared by market volatility, but if you’ve got a really long time horizon … volatility or downturns can present great opportunities for investors,” Fox & Hare financial adviser Jessica Brady told Yahoo Finance.
The most recent stock market slumps have been driven by anxieties around the coronavirus Covid-19, with the Bank of America predicting that 2020 would be the worst year for the global economy since 2009.
But outbreaks like coronavirus aren’t as out of the ordinary as some might believe, Brady said.
“This isn’t the first time we’ve seen something like this in terms of pandemics, and markets have responded in a volatile way.”
However, investors these days have immediate, digital access to their portfolios and are making rapid decisions on their investments.
During the global financial crisis, investors who didn’t stick it out ended up making major losses. “To be honest, if they had just stayed in the market, a lot of them would have recovered. But instead, they accepted a large loss.”
Brady’s top tips for investing
1. Don’t put your eggs in one basket
2. Invest according to how quickly you want to make money
3. Keep calm and carry on
Read full article here.
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