With markets around the world and locally falling heavily in recent days, now is a good time for local investors to review their investments.
This means avoiding the hysteria and focusing on the factors that make businesses worth investing in.
It’s a good idea to work with the current market volatility, rather than against it.
Most importantly – don’t panic!
Markets tend to overreact when there is a sell-off.
The media also tends to push the case with negative reporting.
Block the negative press out and focus on what is really happening.
Sells offs are nothing new for the share market – markets will go up and they will also go down.
Keeping a cool head during any downturns will pay huge dividends for investors.
Below are some tips to consider:
- Focus on large capitalisation stocks that have a good track record of making money in good and bad times
- Look for companies that have safe earnings
- For yield focused investors this sell off could offer up some terrific buying opportunities
- Buying the local banks with yields above 6% has always been a good move
- Growth stocks will take the longest to recover from any downturn. f you are holding growth stocks review the reasons why you are holding the stock
- Buy best of breed. Now is the time to move to the best stock in the sector
- Keep some cash spare as opportunities may come up at any time
- Speak to your adviser about your holdings and any action you should take
Warren Buffet once said;
“Whether we’re talking about socks or stocks, I like buying quality merchandise when it is marked down.”
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