Riding the waves of investing
As summer approaches, it can be a time for fun in the sun, enjoying the beach, and cooling off with a swim in the sea. Many of us also love the excitement of jumping waves as they roll in and trying to capture their might and power to ride them to the shore. Be it on a surfboard, bodyboard or simply swimming, if you get it right, it can be a rewarding experience.
Like trying to surf a wave, when it comes to investing it also takes skill, patience, a willingness to take risks to ride out the waves of a turbulent stock market.
Like the sea, the stock market can be unpredictable. There can be sudden rises and falls that can make even the most seasoned investors a little uneasy. It is no surprise then that during turbulent times, people often feel inclined to pull their investments out of the market and wait until things settle down; much the same as an inexperienced or nervous swimmer heads straight for the beach when massive breakers start rolling.
However, with the right knowledge and approach to investing, it is possible to take a more strategic approach that involves “riding the waves” of the market, holding tight, weathering the ups and downs until things settle down.
Having a diverse portfolio of investments is one way to help do this. By spreading investments across different types of assets, industries, sectors and investment types, losses in one area can be offset by gains in another. Adopting a long-term perspective to investing can also help. Just as a surfer waits for the right wave to come along, being patient before making significant investment decisions is also key. This means avoiding the temptation to panic sell during market downturns as a turbulent stock market can rapidly calm and the choppy waters prove to be a minor blip when you consider things in the longer term.
Of course, riding the investment waves does come with risk. Just like surfing, there is always a chance of wiping out so it’s important to understand the risks you’re taking, especially if you are a novice.
That is why Better with Money has developed a webinar called A Beginner’s Guide to Investing. Structured in an interesting and accessible way, Better with Money provides employees with the tools, knowledge, and skills they need to make their own decisions about investing. The webinar explains the basics of investing, the types of assets you can invest in, how to manage risk and a whole lot more.
So, as you head to the beach this summer, remember that riding the waves isn’t just for surfers and swimmers. With the right knowledge and skills, it’s possible to ride the waves of investing, and you don’t even need to get your feet wet!
If you would like to find out more about Better with Money’s webinars and courses, please get in touch.