7 Rules For Investing – Remember, Markets move in cycles – Rule 3
Remember, Markets move in cycles
During the last 10 years there have been periods where the Australian share market has experienced an unusually long phase of sustained growth. This may have led some people to forget that markets move in cycles, they do go down as well as up. Many factors can send nerves through world share markets causing prices to fall, i.e. major world events. However historically, the overall trend of share markets has been upward.
Keeping this in mind it is important particularly in times of downward moving markets - remember your long term investment strategy and “hang on” as selling out in fear to more conservative asset classes removes the opportunity for upside growth when markets recover. To that end it is also important to regularly review your asset allocation to ensure it is in keeping with your long term goals and life stage.
Source:Colonial First State
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