Successful Investing In Volatile Times

One way to handle volatility is to be patient - this means staying invested and not reacting to short-term fluctuations. Assistant Vice President, Financial Services, Chariot Tan also delves into the four important strategies to cope with unpredictability: Having a plan, understanding volatility, having a bit of a contrarian mindset and staying focused on long-term returns.

First things first, volatility or not, you should already have a plan. Not just any plan, but one that is highly strategic and regularly reviewed to ensure you are on track to meeting your financial goals.

Still feeling doubtful? Try to look at the bigger picture to quell your impulse to sell out. The below chart shows the last 90 years of market history, in both moments of high and low volatility.

In this exclusive feature by Asia Advisers Network, Chariot offers more insights into how investors should deal with market volatility.

“During the course of my profession, I have seen many investors assuming the wrong barometer of risk – equating falling prices and increasing price volatility with rising levels of risk

This eventually led to them selling high-quality investments simply because they were falling and facing with the prospect of further declines while holding on to low-quality investments in the hopes that they would break even someday.”

Delving further, he shares: “Technically speaking, volatility is merely a statistical measure of the dispersion of returns over a specific timeframe. If investors believed in the strategy three months ago, why mistrust it now? Instead of focusing on the price fluctuation of their investment portfolio, which represents volatility and uncertainty more than anything else, investors would be better off focusing on the underlying business reality of their investments.

Also, when in doubt, try to look at the bigger picture to avoid any panic reaction and impulse to sell out.”

Read the entire article at

The temptation to avoid or time the market can jeopardise your financial goals in the long run. Speak with us to find out how you can stay the course and optimise your wealth creation strategy throughout the ups and downs.

Share this Post