Here are four common mistakes to avoid amid market volatity.
- Attempting to time your exit or entry
Whether you’re looking to capitalise on the latest trend or cut your losses amid a downturn, attempting to time the market can lead to missed opportunities and greater risk. - Focusing on short-term noise rather than long-term goals
In finance, “noise” refers to short-term market fluctuations or random movements that don’t refelct the underlying fundamentals or long-term trends.
While it may be tempting to follow generalised, “expert” advice on these short-term changes, history and research suggest that such advice is not always reliable. - Keeping a concentrated portfolio
By diversifying your investments, rather than concentrating them, you lower your exposure to the fluctuations of any single market.
This approach also allows you to tap into multiple markets, enhancing your ability to benefit from diverse opportunities, and strengthening your resilience to volatility. - Listening to your biases rather than professional advice
Investor biases are cognitive or emotional tendencies that can affect your decision-making and lead to poor financial choices.
A financial planner can provide a more experienced perspective to help you navigate financial decisions.
To speak to a financial planner, get in touch.
perennialwealth.co.uk
0117 959 6499
info@perennialwealth.co.ukTrym Lodge, 1 Henbury Road, Bristol, UK, BS9 3HQ
