By Sarah Mawji
As if quarantining for our life is not a big enough concern on its own, we still have to juggle families, job adjustments and finances – practically everything we worried about before we involuntarily made room for the COVID-19 thought bubble in our minds.
Yet, being the adaptable humans evolution has taught us to be, we continue on with trying to mask our worries and adjust. We’ve entered the process of previously untested acclimation. Despite odd conditions of high market liquidity earlier this year and an influx of retail investors participating in the public market, individuals looking to protect their wealth must take a nimble approach to investing in the world’s current economic state.
Investing with a High-Impact Strategy
Whether it’s retirement on the horizon, generational wealth plans setting in or for those newly entering into wealth, market skepticism – that has burdened your financial peace, there is no better time to invest with a high-impact strategy.
What is a high-impact investment strategy?
Not to confuse you but this does not refer to impact investing, but rather an investment strategy of high impact.
Here are some ways to curtail your fears around investing:
At the current time, do not take unnecessary risks.
This does not mean don’t invest but rather take a detour around volatile sectors and focus on long-term, high growth investment vehicles that are relatively stable.
Before adding more risk, take a scan of your current assets.
This is to ensure you’re not putting yourself in the line of fire. Re-assess your current portfolio to ensure that the goals you set prior to COVID-19 still align with your goals, today. If you have an advisor, consult with them before making changes to your portfolio.
“Most investors allow short-term market behavior to alter their long-term plans while financial markets will generally shrug off the short-term events to reach new highs,” says JP Tantalo, BACS, CFP from Envision Private Wealth.
“A good portfolio allows you to be nimble during short-term events without getting out of good investments. Proper diversification using uncorrelated assets, and rebalancing on a consistent basis should take care of you without letting emotions run your decisions.”
Proactive Investment Management.
This step is extremely important. Once you’ve tailored your portfolio to re-align with your new goals, continue to stay pro-actively engaged. The investment management process has been under severe pressure due to the pandemic, as no industry has faced this event in history. Though advisors have been quick to adjust and stay on top of daily changes, it is in your best interest to stay up-to-date on market trends that may affect your portfolio. This will help soften your worries as well as figure out the questions you need to ask your advisor.
Though market modelling and forecasting helps to formulate “a best guess,” of how and when the market will recover, the truth is we don’t know. The true intensity of this pandemic was largely underestimated, and we still have much uncertainty ahead of us. If the market temporarily recovers from a down-turn, be nimble and act. If an opportunity looks volatile, retract.
The best method to this madness is to capture advantage when the opportunity arises but within the confines of your comfort.
Seek guidance, amend your financial goals if needed and work alongside your advisor to pivot your strategy when necessary.
Want more? Check out:
3 Behaviors of Successful Leaders for the 2021 Pandemic Era
Market Commentary: Not Just About The Money
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