Building a consistent, long-term and well-diversified investment strategy

To make the most of your investment opportunities, allow your lifestyle and not stock market fluctuations to dictate your investment approach. Your goals are what count, so keep them firmly in mind when you make financial decisions. If you wish to seek independent financial advice on your investments or an investment you wish to make, we at Hutt Professional have financial advisers who would be more than happy to offer you the independent financial advice you need.

Long-term strategy
Many investors use a consistent, long-term strategy to build a more secure financial future through steady purchases of well-diversified investments, many also seek independent financial advice to ensure the strategy they choose is correct for their individual circumstances. But speculators and market timers are usually less concerned about consistency. They may switch investment philosophies on an emotional whim, sometimes treating their investments more like play money than the serious money needed for their financial future.

Most people would probably say they are investors, but the question is not so easily answered. During a bull market, it can be relatively easy to be a long-term investor. However, when the stock market really starts fluctuating, this is when an investor’s resilience can be tested – revealing many closet speculators.

Predictable cycle
Market timers follow a fairly predictable cycle. When prices seem low relative to historical norms, they buy. When an investment’s value seems to peak, they sell.

In theory, market timing seems fairly rational, but in practice it rarely works. Even the most sophisticated investors, with years of experience and the best analytical tools, cannot predict the whims of the financial markets. What’s more, market timers are often misled by emotional factors such as greed or fear. Many end up potentially buying at the tail end of a market rally or selling in a panic at a loss.

 

If you have an investment or a number of investments or wish to make one and would like to have independent financial advice to ensure that you make the correct changes or the correct investment, we at Hutt Professional have financial advisers with many years of experience in offering independent investment advice. If you are located in Leamington Spa or surrounding areas and wish to seek independent financial advice please do not hesitate to contact us.