So why should you invest during shaky economic conditions?? Because your financial strategy should be defined for the long term – that’s the simple answer. Those blips in the economy will be insignificant 5 years from now. With the current sprawling globalization, the world is getting smaller. Events and headlines from across the globe have a more significant impact on the economy because countries are more interconnected than ever before. While the ebb and flow of these dynamic events can bring about uncertainty, it is important for investors to remember not to panic or make impulsive decisions.
Patience is a virtue.
It is important to keep focused on the long-term horizon and not be swayed by the vagaries of near-term market and economic fluctuations. As the old adage says, “This too shall pass.” The mixed messages do not eliminate the need to save for the future.
The goal of every investor should be to weather the storm of short-term volatility and continue to invest to meet future demands. This includes financing for important life events, such as purchasing a home, funding a college tuition plan and meeting the fiscal demands of retirement.
Savers should review their investment allocation strategies to ensure that funds are being applied where they will earn the greatest returns. A down market may also be the best time to add to a portfolio to be in a better position to take advantage of any subsequent swings higher. Investors should seek the advice of a professional financial planner who can help guide them and provide insights on where to invest during periods of uncertainty.