January 2024 | Newsletter 11
When financial markets experience volatility, many investors obviously worry; but what are the real effects of a “volatile market”?
If you are a long-term investor, with a timeframe of five years or more, you cannot afford to overlook the benefits of growth investments such as shares or property. As an astute investor you will be aware of the fact that the value of these assets will vary over time – both up and down. However, if you have purchased a sound asset, whether it is shares or property, the price will generally rise over time.
When you invest in growth assets it is important to accept that you should be targeting an average rate of return. Some years you may achieve returns well in excess of your target, while in other years the return may be lower, and sometimes negative. If your targeted average is achieved over the longer term you will meet your objectives.