The world we live in is no longer the financial utopia we know of. Plagued with volatile changes the financial market seems to be the second most spoken of topic at present, the first evidently being the COVID-19 pandemic.
Should investments be made in a proverbial sinking financial ship? The age-old question that most experts would be wracking their brains out regarding. So, should you invest your hard-earned money at this point? Would there ever be a return on investment (ROI)? Despite what certain financial guru’s and companies state the answer should be a resounding NO. At least for the moment.
Experts say the global financial market may display what we call a ‘pseudo recovery’ giving the perception of financial strength. This fluctuation may prove to be momentary and subsequently end up near bottom yet again, killing all expectations of short-term ROI.
Is There a Typical Financial Year?
Past performance has been quite successful at predicting the fluctuating market to a certain degree, however, that method will not yield success at present.
Despite this many optimistic investors continue to hold certain expectations around the annual return they are likely to end up with from their investment portfolio. This may prove to be a grave mistake if not planned properly.
An average year basically is defined by both the good and the bad returns of the previous years, however, in reality, no single year will provide lucrative results across each asset class.
Investing for a prolonged period, ideally, over 5 years may now seem a tad more sensible and risk-free to an extent. Statistically, this will give you an opportunity even out the losses in the event losses are incurred.
Investments at the end of the day can rise, fall and rise again, this is how the market works and unfortunately, no expert nor guru could predict when the next big return would turn out.
Patience is the key to making calculated decisions when considering your finances at least.
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