Investing For Success

There is no doubt the markets can be a roller coaster ride, but those who ride the wave and stay invested make money. Here are a few tips to help you stay focused and keep your financial goals in sight.

1.     Think Globally

 When it comes to investing, many people feel safer sticking close to home. There is nothing wrong with wanting to feel safe but Canada makes up only 4% of the world's markets, investing solely in the Canadian market limits both investment opportunities and diversification. 

Investing abroad can introduce additional risks, like shifts in currency values and political or economic upheaval, but it can also bring real benefits like, rapidly growing economies

2.     The Risks of “Safe” Investments

When it comes to calculating your investment goals, you should always factor in inflation. The risk of inflation is one reason what many consider safe investments, like GICs, may not be so safe after all. 

3.     Don’t Miss Out

There is that old cliche "Buy low. Sell high." A great strategy if you have a crystal ball. Otherwise, every time you buy and sell you can incur additional costs or risk missing out on the markets best days. A better strategy is to stay fully invested. 

4.     Diversification = Less Risk

There is something to be said for not putting all your eggs in one basket. Drop the basket and your lose all your eggs. The same could be said for your investments. It is important to diversify and put your money into different types of investments.

5.     Time is Money

"I just don't have the money to invest right now." It is a common reason people put off investing but there is wisdom in the saying time is money. One of the best ways to build wealth is to start early.  The sooner you invest the more time your money has to grow and benefit from the power of compounding.

6.     Time Heals All

Some investors may shy away from equity investments, fearing volatility. While over the short term that might be true because equity returns can fluctuate, historically, equities tend to become less volatile the longer you hold on to them .

If you have any questions or need advice, remember you can always reach out to the ContinuumII Inc. team. We are always ready to help. 

**information provided in part by Fidelity Investments**