Time To Be Watchful And Not Panic As The Markets Remain Volatile

Time To Be Watchful And Not Panic As The Markets Remain Volatile

Business Technology

Though investors cheered the rapid upswing of Wall Street after the historic plunge on Christmas Eve after nearly a decade of steady growth, most are still a little shaken with the see-saw movement of markets. Market advisors have advised both retirement savers and scarred investors to be brave enough to take the rough with the smooth based on their risk appetite as panic selling or buying is not a strategy that one needs to take in a choppy market. Investors have to access their risk capacity that can sustain them both in conditions of upswings and downswings.

Finding a balance between managing risk and getting rewarded for the same is a challenge that few can take as investors need to constantly re-evaluate their portfolio and risk exposure that they can sustain comfortably irrespective of market swings. Instead of fearing swings in share markets investors should follow a measured approach taking a certain degree of fluctuation into account as both upswings and downswings can bring huge opportunities if anticipated correctly. So focus on big picture is the best way to win in volatile markets as long term retirement plans are not impacted much by these forces.

As per chief investment strategist of London based Absolute Strategist Ian Harnett, the trouble now is because most investors had become complacent due to steady growth for the past few years which was based on unprecedented economic growth. So they were jarred by the sudden plunge and growth that has hit the markets in the past few weeks. Experts point out that equity markets in US are doing fairly well when compared to markets in Asia and elsewhere so until there is a financial crisis the current volatility in markets will slow down after a few months. However the recent swings have been a wakeup call for lazy investors that have held on to stocks in expectations of high returns.