Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. The Motley Fool UK has recommended GSK plc.
James McCombie has positions in GSK plc and Vistry.
The post Stock market volatility: stick or twist? appeared first on The Motley Fool UK.ĥ Stocks For Trying To Build Wealth After 50Ħ Shares That Could Be The Biggest Winners Of The Stock Market Crash And if I buy quality stocks and build a diversified portfolio, the return on my investment over time should be good. I buy at high and low prices over time, which should average out over the long term. Join world-renowned leaders for an urgent discussion on driving impact around inclusivity, education and the workforce of the future at 5pm EST on July 28 on Yahoo Finance. For example, I’ve recently added to my positions in GSK and Vistry. Since I have no reason to believe I can successfully ‘time’ markets, I invest consistently in what I believe are quality companies with funds I don’t need for three-to-five years when volatility is both high and low. Look at the disclaimer on any trading platform - it will say that most retail traders lose money. Most market participants are bad at timing markets. I don’t rush to sell shares in companies that I think will do well in the long term, even if their prices are sliding. But there can be no denying that 2022 has been disappointing. As the exercise above demonstrates, an investor might be led to believe that right now, the stock market is more turbulent than ever. Refusing to be guided by the news cycle is one step to dealing with times like these. Not selling the things that are probably declining in value but instead buying more of the same type of thing takes discipline and courage. But existing portfolios, constructed presumably of previously purchased bargains, will suffer during volatile times. Bargains are more likely to be found in volatile markets.
There’s are tensions linked to a buy-and-hold approach. It’s hard not to react when a stock’s price is being dragged down by sour market sentiment even if, operationally, the company behind the stock seems to be doing okay. Declining markets tend to be volatile so, it’s at these times when I should be on the lookout for bargains.īut such times usually mean existing holdings are taking a hit. It tends to rise when the markets are heading down more often than when they’re heading up. I’ll hold stocks for years, even decades, assuming their fundamentals don’t change for the worse. It’s not simple to find quality companies with excellent prospects and buy them at an attractive price, but when such an opportunity presents itself, I’ll take it. We encourage a buy-and-hold approach to the stock market here at the Fool UK. Young mixed-race woman looking out of the window with a look of consternation on her face
0 kommentar(er)
