How You Can Use Market Volatility to Your Advantage

When markets are bumpy it can be a good opportunity to review your holdings and look for potential stocks to add to your portfolio

Dan Kemp 4 September, 2015 | 10:50AM
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Dan Kemp: Periods of market volatility are always unsettling for investors, but they present a great opportunity to improve the overall quality of your portfolio by buying great assets at discounted prices.

The most difficult thing is to remain long-term while those around you are panicking. It's particularly difficult when buying assets and then seeing the value decline further as prices go beyond what would be considered a fair value. But stay long term, retain that focus, but don't be complacent. We know from 2008 the change in the financial economy can have an impact on the real economy altering that long-term fundamental value.

So, in summary, don't panic, focus on value, but remain aware of what's happening to the fundamental value of your holdings.

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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Dan Kemp

Dan Kemp  is Chief Investment Officer, Morningstar Investment Management EMEA

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