The stock market can be volatile, but it’s a market that many people will delve into at some point in their lives whether directly buying shares or through their employer retirement saving fund.
Investments should form a core part of any financial planning, even during uncertain times. While we try to make sense of the economy during this current Covid-19 impacted period and get used to this new ‘normal’, many people still question whether it’s the right time to invest and where to invest.
The market has experienced a strong start to the month as it continues to claw back losses from earlier this year. Over the past four months we have seen many shares falling sharply and then rise again; at the same time, there were shares that were resilient and came out stronger than before. This period once again emphasized the need to stay invested even during significant market crashes.
This lockdown presents an opportune time for investors to reflect on their investment goals. These goals could be short term like saving for an emergency that may arise, or long-term like saving for retirement.
The current pandemic which has impacted many through reduced income and job losses has shown the value of having regular monthly contributions towards emergency savings. This will also lead to avoiding having to dip into long term investments.