While remaining positive in the current economic environment is difficult, it is especially crucial for investors building wealth toward their retirement to do just that. Projections of poor economic growth in 2020 may have placed even the best-laid investment plans under pressure to deliver the returns that many investors are counting on for their retirement.
It may be difficult at the moment to believe there is light at the end of the tunnel, but history tells us that downcycles end and are invariably followed by the next upcycle. This is the view of Collin Nefdt, Old Mutual Corporate Consultant, who says as difficult as it may be, he urges all investors to temper the urge to tinker with their investments.
“Compounding their fears about the future, investors are now facing the possibility that the economy is likely to remain under pressure for longer,” Nefdt says. “It is only natural that investors may want to alter with their long-term portfolio to counter these adverse effects.
“However, the long-term benefits of staying the course far outweigh the short-term psychological gains from moving into seemingly less volatile assets.”
Nefdt’s confidence that markets will continue to behave as they have done for centuries is reinforced by the 2018 book by respected investment manager Howard Marks, who is co-chair of Oaktree Capital Management in the USA.
In Mastering the Market C