MORE women have been taking hold of the reins in managing their money and leading the charge to becoming financially independent, as the investment landscape has evolved in recent years.
Despite the strides made in history, consulting firm Age Wave found in a recent study that women are less confident about their ability to manage their investments than men and are more anxious about their investment decisions. This, when added to the current uncertainties in the market, can create even further anxieties when making investment decisions.
With investing in the stock market being associated with some amount of risk, remaining calm during market fluctuations can be difficult, as some investors see this as a time to panic. However, as Mischa McLeod-Hines, assistant vice-president — capital markets at Sagicor Investments Jamaica will tell you, there are many more productive ways to overcome the anxieties and allay your worries during times of uncertainty.
She said it is understandable that the current economic downturn caused by the onset of COVID-19 is a catalyst for concern for investors and their money, but constant worry is not beneficial to any investor.
Below McLeod-Hines shares some tips investors can use to help navigate this new space in the market:
She said the more informed and prepared investors are, the better they will feel about their portfolio and its progress. Noting that the financial services industry is constantly evolving, she encouraged persons to educate themselves by regularly reading books, taking courses online or joining forums geared towards discussing the topics they are interested in.
Focus on what you can control
She also said the inability to control what is happening in the market can cause investors to worry, but advised that in these circumstances, it is best to concentrate on the things in life that are within your control.
“Agonising over the market performance will only lead to more worry. Focus your energies on the elements of your finances which you can still control, like your budget and spending habits.”
Think of your long-term investment goal
McLeod-Hines further advised investors to stay focused on their investment goals, adding that if they invested for the long term, she would not recommend exiting positions due to current market conditions, as they may realise a loss on their portfolio which would likely regain value with future economic stability.
Be ready to respond
According to McLeod-Hines, there are tremendous opportunities that have resulted from shifts in markets globally that can be advantageous to investors. She said the coronavirus has caused companies to make big transformations to stay afloat and remain relevant to clients and potential investors. From small start-ups to large corporations, companies have been forced to rethink, pivot and revamp the way they do business, thus possibly leading to investment opportunities that you can capitalise on.
Get professional help
She also reminded investors that there are many trained professionals, like wealth advisors, who can guide them in making strategic decisions about their investment portfolio.
“You are not in this alone, speak with your wealth advisor before making changes to your investment portfolio. This individual can help to build your confidence as an investor, while simultaneously building your portfolio,” McLeod-Hines said.