Investment Volatility: When Should You Actually Change Your Strategy?

Sharp market moves create pressure to act. Falling markets can make investors want to sell, while strong markets can encourage people to take more risk than they originally intended.

Before changing an investment strategy, it helps to distinguish between a change in markets and a change in your circumstances.

A strategy may need review if your goals, time horizon, income needs, risk capacity or broader financial position have changed materially.

Market volatility by itself is not always evidence that the strategy is wrong. Sometimes it is simply the uncomfortable part of owning growth assets.

The useful question is not 'what did the market do this week?' but 'has anything changed that affects what this money needs to achieve?'

Ready to Take the Next Step?

Speak to Chris Pretorius at New Adventures for a conversation about your financial strategy and the next step that is right for you.

Email: chris@newadventures.co.za | Call: +27 83 281 3949

New Adventures — Financial Strategy for Your Future.