What goes down must come up!

“What goes down usually goes back up, if you are willing to be patient and don’t hit the panic button.” Mark Mobius, Founder Mobius Capital.

Over the past year investment returns have been disappointing! So far this year (up to 27th November 2018) the markets have generally declined. Here are the returns:

The world is made up of “up” and “down” cycles. Stock markets go up and down, the property market is buoyant and then stagnant. Once all the dust has settled markets will go up again!

Declines in the stock market are quite normal and should not be regarded with fear! We, at Kevin Mills Financial Services, have always made it abundantly clear that markets go up as well as down! From time to time all markets decline! This is quite normal and part of the dynamic of any stock market. The important thing to realise that this is not some cataclysmic event! It is quite, quite normal.

In many ways, a decline in the market is good news. Markets need to take a “breather”. In fact when a market declines it presents great opportunities for fund managers to select shares that are now trading cheaper than a few months ago.

So what should investors do? 

  • Stick to your investment plan. Declines in the stock market are quite normal.
  • Don’t buy high and sell low. That is irrational and guarantees losses!
  • Ignore all the noise in the market from people who don’t understand the markets.
  • You have probably invested with fund managers that are rational, competent, experienced and who have spent an enormous amount of time studying the markets. Trust them!
 “The time of maximum pessimism is the best time to buy and the time of maximum optimism is the best time to sell.” Sir John Templeton.
 “One of the funny things about the stock market is that every time one person buys, another sells and both think they are astute.” William Feather, American author.