Can You Get Rich by Following This Investment Advice?
If you’re pursuing a long-term investment strategy then it may be tempting not to get too involved and simply hold on to your investments over the summer period. Just because the volume of trade drops, doesn’t mean that the value of your investment will drop. It’s certainly worth keeping a close eye on your investment, since the reactions to market news and other movements can be blown out of proportion when the market is generally quiet but there’s no obvious need to pull out of the market entirely.
In fact, if you’d like to take a little break from the daily grind of investments then the summer is definitely the time to do this. The generally lower volume that’s at play will generally play in your favour since you are less likely to face major market movements than at other times of the year. Company results won’t be coming flooding in every day of the week and major economic announcements from Central Banks and other government agencies will generally be thin on the ground.
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Generally, while the maxim about the market being quieter over the course of the summer certainly has some truth to it, there’s little evidence that this means you should actually get out of the market. Certainly, if you’re only looking to make a short-term return then there is an argument for looking elsewhere. On the other hand, investors who are looking to make long-term and strategic decisions about their investment portfolio should be comfortable about staying in the market over the course of the Summer. After all, if the majority of investment professionals whose entire careers depend on watching the market like a hawk are happy to take a little time off over the summer, then that’s probably a good sign that you should feel fairly comfortable about doing the same thing.
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