Time and time again there is news that will create confusion as to what is the best course of action with new moneys sitting in cash ready to invest as well as portfolio positions. As an investor we are often looking for the top investments and best time to invest. As news flows, questions arise such as: Do I invest now or wait? Should I sell since there is so much bad news? Which will be the best sector in the near-term?
The reality is that a majority of news coverage focused on financial topics is often already priced into markets. Have you ever noticed that just when the information seems to be heading for the worst, markets have already started to move the other way? This is an occurrence that is seen frequently and should be used as a reminder that it is time in the markets, rather than market timing that will help you, as an investor, profit over the long-term.
Spreading out the risk through diversification, rebalancing on a regular basis and adding to your portfolio’s investments regularly over time, through dollar-cost averaging may be some of the best advice that you can ever get for your investments. While pushing into an investment on the low can provide a very substantial reward, it is a difficult process to master. Even the best market timers have difficulty with this on a consistent basis.
Even though it may not be the sexiest investment plan, the truth is that creating a diversified portfolio that is aligned with your personal risk tolerance can be the simplest and most effective program to meet your goals. Ensuring that you stay the course while ignoring some of the intermittent noise can put you well ahead of the game over time.
Gain insight to more financial topics by visiting the Mission Financial Solutions (MFS) website. If you are a Compass Rose Health Plan member, you can access the MFS site through your Member Portal. To login, visit member.compassrosebenefits.com, or sign-up at www.compassrosebenefits.com/Register.