The combination of macroeconomic factors such as inflation, interest rates hike, the Russia-Ukraine conflict, coupled with the persistent threat by COVID-19 have all contributed to the recent market volatility. A volatile and uncertain market as such poses a question in investors’ mind: What Should I Do Now?
It is only natural and understandable that you may feel a sense of fear, panic or anxiety as it can be difficult to watch your investment portfolio decline. These emotional responses can even cause investors to make impulsive decisions.
Having said the above, it is important for investors to embrace the hard (but necessary) reality that an uncertainty is inevitable in the financial markets. For example, when we are driving on the road, it may not be possible for us to foresee potential flash floods or tyre puncture that may occur.
In times like these, what’s more important is for investors to keep calm, be rational and stay focused on your investment objectives.
Navigating through market volatility – the Do’s and Don’ts:
“Successful investing takes time, discipline and patience.
No matter how great the talent or effort, some things just take time.”
– Warren Buffett
Well-informed and educated investors should stay focused, disregard market noise, and not to feel shaken during uncertain market. These should help investors see that the uncertain market may also present opportunities to invest.
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Disclaimer:
This article has not been reviewed by the Securities Commission Malaysia. Investors are advised to read and understand the contents of the Hong Leong Master Prospectus dated 23 August 2019, First, Second and Third Supplementary Hong Leong Master Prospectus dated 18 November 2019, 27 March 2020 and 31 December 2020 respectively (the “Prospectus”) and Product Highlights Sheet (the “PHS”) before investing.
The data and content presented in this article are for information purposes only and are not a recommendation to buy or sell any securities or adopt any investment strategy. This material is not intended to be relied upon as a forecast, analysis, research, or investment advice regarding a particular investment or the markets in general, nor is it intended to predict or depict performance of any investment. The information in this article does not take account of any investor's investment objectives, particular needs or financial situation. You should consider whether an investment fits your investment objectives, particular needs and financial situation before making any investment decision.