What to do when markets are volatile

Equity markets are not really designed to sit still. They will inevitably move up and down from day to day creating a fairly fast moving sequence of events. However in recent times even markets, by their own standards, have appeared to be more volatile.

The problem we all have is that when others are running around making changes the social proof, or herd mentality, suggests that we should do something too. But do what? Buy? Sell? When?

The problem is that when you get into that game of trying to do something you often get into trouble because you are then into a circle of decision making that is frankly beyond just about anyone in the world.

Warren Buffet, arguably the world’s most successful investor, has a very simple strategy when investing. Find something really good and hold it for a very long time.

So when you have a portfolio of funds that is well balanced and suited to you as a person, not the markets, there is really no need to do anything other than watch the drama unfold before you. That or simply carry on enjoying your life free from the shackles of your computer and online portfolio updates.

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Blog by Jaskarn Pawar

Jaskarn Pawar is an experienced and award winning Chartered and Certified Financial Planner. He advises people all over the UK on financial planning and wealth management issues to help them reach solutions to fit their personal needs. You can contact Jaskarn on 01604 211234 or by e-mail on jaskarn@investorprofile.co.uk