Taking a long-term view

Remember your reasons for investing in the first place

Stockmarkets can be unpredictable. They move frequently – and sometimes sharply – in both directions. It is important to take a long-term view (typically ten years or more) and remember your reasons for investing in the first place.

Be prepared to view the occasional downturns simply as part of a long-term investment strategy, and stay focused on your goal.

Historically the longer you stay invested, the smaller the likelihood you will lose money and the greater the chance you will make money. Of course, itís worth remembering that past performance is not a guide to what might happen in the future and the value of your investments can go down as well as up.

Time to grow
Give your money as much time as possible to grow – at least 10 years is best. Youíll also benefit from ëcompoundingí, which is when the interest or income on your original capital begins to earn and grow too.

Staying invested
There will be times of market volatility. Market falls are a natural feature of stockmarket investing. During these times it is possible that emotions overcome sound investment decisions – it is best to stay focused on your long-term goals.

Donít try to time the market
Resist the temptation to change your portfolio in response to short-term market movement. Timing the markets seldom works in practice – and can make it too easy to miss out on any gains.

The golden rule to investing is allowing your investments sufficient time to achieve their potential.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. WILL WRITING IS NOT REGULATED BY THE FINANCIAL CONDUCT AUTHORITY.

LMJ Financial Management Ltd is authorised and regulated by the Financial Conduct Authority to provide investment advice and is bound by its rules.

The material on the site is the copyright material of LMJ Financial Management Ltd. You may not copy, reproduce, republish, disassemble, decompile, reverse engineer, download, post, broadcast,transmit,make available to the public, or otherwise use LMJ Financial Management Ltd's content in any way except for your own personal, non-commercial use. This includes, but is not limited to all individual fund manager data such as rankings or fund managers and ratings of fund managers. LMJ Financial Management Ltd does not accept any liability for your reliance upon, or any errors or omissions. Any other use of LMJ Financial Management's content requires the prior written permission of LMJ Financial Management Ltd.

LMJ Financial Management Ltd, Upper South Hall, Bullen Farm Business Centre, Bullen Lane, East Peckham, Tonbridge, Kent, TN12 5LX
Tel: 01732 874111 Fax: 01732 874222 Email: lmj@lmjfs.co.uk

©2013 LMJ Financial Management 2013.
Cookie Policy
l Privacy Policy l Disclaimer

 

HTML5 Powered with CSS3 / Styling, and Semantics