Blocking out ‘noise’ for the good of your portfolio
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Blocking out ‘noise’ for the good of your portfolio
It’s so easy to feel overwhelmed by the endless barrage of negative news or ‘noise’, which can stoke anxiety about the performance of your investments and doubts over whether your investment strategy is on course. Learning to block out this noise, which may influence hasty or erratic investment decisions, is essential.
By keeping a record of your reasons for investing, you can help temper any inclination to deviate off course. Revisiting your initial decisions enables you to gauge whether your long-term priorities have altered.
Step back and breathe
The use of devices allows us to instantly be updated, which is important for things like keeping in touch with family, but with investing, avoid the temptation to set up alert notifications for companies or funds in which you are invested. Short but sweet advice from global investment guru Warren Buffett in 2016, after a period of extreme market volatility, perpetually rings true, “Don’t watch the market closely.”
Although there are obviously no guarantees, blocking out ‘noise’ to focus on the long term, gives your investments a greater chance of yielding positive returns and benefiting from compounding.
It is important to take professional advice before making any decision relating to your personal finances. Information within this document is based on our current understanding and can be subject to change without notice and the accuracy and completeness of the information cannot be guaranteed. It does not provide individual tailored investment advice and is for guidance only. Some rules may vary in different parts of the UK. We cannot assume legal liability for any errors or omissions it might contain. Levels and bases of, and reliefs from, taxation are those currently applying or proposed and are subject to change; their value depends on the individual circumstances of the investor. No part of this document may be reproduced in any manner without prior permission.
The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated. If you withdraw from an investment in the early years, you may not get back the full amount you invested. Changes in the rates of exchange may have an adverse effect on the value or price of an investment in sterling terms if it is denominated in a foreign currency.
Information is based on our understanding of taxation legislation and regulations. Any levels and bases of, and reliefs from, taxation are subject to change.
Tax treatment is based on individual circumstances and may be subject to change in the future.
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