Best to avoid the markets: The frequency of which inside the tumult from the past year are you currently inclined or advised for this effect – a lot of complications, heightened risks, means that so different, better to stop before future outlook clears.
Without a doubt an oil price collapse of epic proportion and artificially low bank rates – in the U.S. kept at near-zero levels for decades at a time – have their toll. But to categorically avoid the stock markets and avoid investing is usually to overlook the late Sir John Templeton’s warning how the words “this time it’s different” are the most high-priced, or dangerous, inside the entire investment lexicon. Even Sir John could possibly agree it’s been a whole lot different since near-collapse on the planet overall economy within the years 2007-09 and also the dislocations of that oil-related “tsunami” that began hitting in late-2014. But, not so different how the timeless market cycle and its particular ceaseless self-adjusting mechanisms wouldn’t once more bring inevitable economic and stock trading game recovery.
Sir John never had any doubt about this because he reminded how bear financial markets are born on the height of euphoria, much like the tech-boom of 2000 – 01, and bull markets in the depths of despair, much like the spring of 2009 – and maybe January – February 2016.
As well there were his steadfast adherence to “time in” as an alternative to “timing” the markets being much the greater important, but always – in accordance with a well-planned and executed investment strategy. Add his favourite word “fortitude” and his famous Templeton Mountain Chart serves as a timeless reminder of what an organized, long-term procedure for investing will bring.
While precise market timing cannot the simple, waiting for a Godot mostly never appears could only be self-defeating. The reality is it is rarely altogether different. Instead, a good Sir John at his word; invest as outlined by a strategically balanced plan. Wounded Canadian investors ought to keep doing this “fortified” in the knowledge that a fire-sale cheap Canada, its dollar and stock markets can seldom have offered such longer-term bargain investment attraction to support individual capital-appreciation or income needs, risk-reward tolerances and ultimate portfolio goals.
This is also true for investors managing their particular portfolios. Obtain an advisor / researcher to assist you, setup your portfolio according to well-established and prudent criteria and think long-term. Don’t wait for an “perfect time” to acquire, it won’t exist. Or, as Si John was keen on saying: “The best time to invest occurs when you will find the money”. Understand that if the marketplace are at its most tumultuous, you may feel anxious and want to sell. Resist the urge, secure knowing your portfolio will regain its value and a lot likely then some, if the market swings back – that this always does.