During Market Volatility, What Are Some of The Investment Options Available?

1. During Market Volatility, What Are Some of The Investment Options Available? Any investor can experience stress during periods of market volatility. The "line going down" on a portfolio of assets' value can encourage rash decisions, which may not be the best steps for building wealth over time. Markets are currently being disrupted by a wide variety of factors, including inflation and rising interest rates, the conflict between Russia and Ukraine, and the COVID-19 pandemic, which continues to have global repercussions. Five Considerations for Investment Through Volatility It can be hard to understand what investment options are available in such a market – so we have put together a list of available investment options to consider: 1.) Investment is a marathon, not a sprint During times of decline, it can seem like the time to "get out" of a market. However, if you pull out of an investment when markets are

2. falling, you lock in a loss and miss out on the positive returns that come with a market recovery. 2) For money you might need now, find stable assets to invest in While you wait for your portfolio of stocks and other assets to recover from a volatile market, it is essential that the money you need is safe. Saving six to twelve months' worth of living expenses in an interest- bearing investment or bank account is a good idea. Other options for stable asset investments include treasury securities and bonds. 3.) Focus on diversification During times of volatility, it is essential to increase your portfolio's diversification. The more your wealth is spread, the less the impact will be from any single decline. Even for inexperienced investors, diversification across multiple market segments and even international markets is simple. 4.) Add dividend investing to the portfolio An additional step you can take with diversification is to add dividend investing to the portfolio. When you do this, you directly invest in shares of companies that pay dividends. As a result, you get a cash return per share every year. This is not the case for every business, and investing in growth stocks gives greater rewards during times of stability. A company can invest some of its profits in the business rather than paying a dividend, thereby enhancing the value of the company and, therefore the value of its shares and providing investors with greater returns. 5.) Property

3. The property market is another opportunity for Australian investors. The market has increased in value over any given ten-year period, making long-term property ownership a reliable means of wealth accumulation. In addition, owning an investment property makes it possible to generate regular rental income. There are property options that allow investment in property without direct ownership of any one building for those who do not wish to buy a property outright. Through these funds investors will still see regular income payments, based on the percentage of the revenue generating properties in their fund. Cool Heads Will Prevail But the most important thing to remember is that a volatile market is not a reason to retreat. It is essential to speak to your experienced financial advisor in Central Coast to discuss the diversification strategy, particularly as the volatility is likely to continue in 2023. The diversification strategy should be discussed with your highly skilled Oracle financial adviser, particularly given that volatility is likely to continue in 2023. Powered By Powered By