As many investors know, these last few months have been a huge emotional roller coaster watching the markets plunge and then recover!! However, it is important to stay focused on your long-term investment goals and not react emotionally with short term information. Let us show you why NOW, is a great time to invest!!
Has anyone explained to you about the 3 D’s of Investing? Unfortunately, too many people have not heard about these 3 important rules of investing:
1. Diversification
2. Dollar Cost Averaging
3. Discipline
Diversification
Luckily, all of our clients are in Diversified portfolios. Diversification is the technique that reduces risk by spreading your investments around so that your exposure to any one type of asset is limited. Instead of investing all of your money in one stock, like Apple, you invest in a mixture of various companies and industries in different countries (Canada, U.S. & International).
Dollar Cost Averaging
Dollar Cost Averaging is a method of investing your money in the market at regular intervals (monthly, bi-weekly or weekly). It eliminates having to predict when your investments will be at their highest or lowest cost, as we can’t “time the market”. When you’re investing regularly, it can result in paying less and receiving a higher return on your investment. For example, you could buy 10 units this month, 8 units next month and then 15 the month after!! By investing at regular intervals, you are also spreading out your investment risk.
Discipline
Being Disciplined is the hardest rule to keep, especially in a highly volatile market. When it comes to investing, patience is a virtue. By maintaining your focus and staying invested through all market activity, you can increase the long-term return potential of your portfolio. This ensures that you won’t miss out on potential gains when markets are rising. Everything is on sale right now and the prices are incredible!
Don’t let your emotions get the best of you! As you can see from the diagram below, the investors that stay invested for the long-term, always WIN!!
Illustrating the Financial Emotional Roller Coaster
As Warren Buffett once said, as an investor, it is wise to:
“Be Fearful When Others Are Greedy & Greedy When Others Are Fearful” and “the best way to invest is to ZIG when others ZAG”.
Please check out this great article from AGF. It explains more about investing in uncertain times. (AGF takes its name from the initials of the American Growth Fund, created in 1957 and the first mutual fund in Canada to invest solely in U.S. equities.)
NOW is a great time to invest in your future. We have been busy helping many families build or re-build their Financial House the right way and we can help you too.
At the Blackmore Levy Group, we have an exclusive system that benefits everyone, whether you have a Hundred dollars or Millions of dollars. Our passion is helping and educating everyone!
Since many people are going through challenges right now, please know that we are here for you, no matter what your financial situation.
For a FREE Custom designed blue print of your Financial House, please call 1-888-520-6520 or contact us to book a private non-judgemental consultation so we can build or rebuild your Financial House the right way. We look forward to talking to you soon.
