by Ken Sze
1. An investment approach that emphasises time in the market as opposed to timing the market is a potential route to more reliable returns.
2. A more objective and methodical approach to investing mitigates common behavioural biases which may create challenges to meeting investment objectives consistently.
3. Freeing up time to focus on a smaller number of higher risk/return satellite investments, after delegating a stable core portfolio, can be a time and resource-efficient working methodology.Time in the market vs timing the market
Behavioural bias
Shifting focus1. Keep an eye on the holistic picture. Is your overall wealth allocation optimal? Are you putting capital to work most effectively, without holding excess cash?
2. Regularly remind yourself of your goals. How does data or news, and your proposed actions in response to it, affect your ability to reach your goals?
3. Separate the facts from the narrative. Not all headlines will affect markets or, more importantly, your portfolio.
4. Stay composed and reap the rewards. History shows that investors who stay invested through periods of uncertainty and volatility are compensated in the long term. Their returns compound over time.
5. See beyond the immediate for opportunities. Challenging periods offer opportunities, for those who can see them. Hedging against risks can help to manage the downside, while helping you stay the course.
Source: Business Times
https://www.businesstimes.com.sg/wealth ... volatility
