When markets are volatile, your first instinct may be to move to the sidelines. But there are ways to position yourself for success in all markets.
Investing for success
It’s all about staying invested for the long term.
Fidelity's “Investing for success” is a series of eight proven strategies that can help you remain focused on your long-term investment plan and reach your goals.
Time heals all
Many investors shy away from equity investments, fearing volatility. It’s true that over the short term, equity returns can fluctuate substantially. But historically, equities tend to become less volatile the longer you hold on to them, while continuing to provide the potential for growth.
Don't miss out
“Buy low. Sell high.” It’s the ideal long-term investment strategy. Except without a crystal ball, it’s impossible. And the costs of getting it wrong are high. Every time you buy and sell, you incur additional costs, and worse still, you risk missing out on the market’s best days.
The risks of “safe” investments
When calculating your investment goals, you should always factor in inflation. Although inflation is currently low, the future holds no guarantees – and even low rates can eat away at your savings.
Diversification = less risk
Which is riskier – stocks or bonds? The right answer is “both”: either one can be risky if it’s the only type of investment you have. That’s why it’s important to diversify – to put your money into different types of investments.
Think globally
When it comes to investing, most of us seldom leave home. But since Canada makes up only 4% of the world’s markets, investing solely in the Canadian market limits both investment opportunities and diversification.
Time is money
It’s easy to put off investing. The common perception is that if you don’t have enough money to invest now, it’s better to contribute more later. But in fact, one of the best ways to build wealth is to start early – even if it’s only a small amount.