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Long-term investing - Focus on your goals, not market “noise”


There’s an old saying among successful investors that goes “It’s time in the market, not timing the market.” And that’s not just a catchy phrase – it’s a mantra that goes right to the heart of long-term investing. “Timing the market” is another way to refer to short-term investing that attempts to get assets into the markets on good days and take money out of the markets before bad days. “Time in the market” refers to a longer-term approach that investors take to ride out volatility, knowing that predicting market movements is very difficult (if not impossible). The issue at hand is that people are inundated with information that pushes them to try to successfully time the market.

Turn the volume down
When investing, there is “noise” everywhere. By “noise”, we mean opinions and speculations about financial markets and the economy. We see it every day on the news, we read about it in newspapers and we definitely hear about it from our friends and family. It’s important to take all this information with a grain of salt. These opinions are not always coming from trusted sources, and in the case of the media, they are mainly just trying to get you to react emotionally and buy tomorrow’s paper.

Focus on your goals
Successful investing requires that you not react emotionally to all the noise. It’s true that financial markets decline at times, and it can be unsettling to see your portfolio’s value decline as well. But it’s important to remain focused on your long-term goals. In times of heightened volatility in financial markets, ask yourself Am I still on track to achieve my objectives? Day-to-day market movements generally don’t have a material impact on a person’s long-term future.

Seek valuable advice
Staying focused on the long term can be difficult without having someone you can trust to talk to. That’s where an experienced financial advisor can help. A good advisor can create an investment portfolio tailored to your individual needs, and he or she can also be a sounding board for your concerns and a trusted source for ongoing advice.

To help maintain a long-term perspective when investing: avoid the noise, focus on your goals and seek advice from a trusted source. These three tips will likely provide you with much more confidence in your financial security.

There’s an old saying among successful investors that goes “It’s time in the market, not timing the market.” And that’s not just a catchy phrase – it’s a mantra that goes right to the heart of long-term investing. “Timing the market” is another way to refer to short-term investing that attempts to get assets into the markets on good days and take money out of the markets before bad days. “Time in the market” refers to a longer-term approach that investors take to ride out volatility, knowing that predicting market movements is very difficult (if not impossible). The issue at hand is that people are inundated with information that pushes them to try to successfully time the market.

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