Dear Adventurer,
The investing clime, in general, and around the world has been quite unattractive in recent times.
The stock market is bleeding, Equity mutual funds aren’t exactly smiling, the agro-crowdfunding sector in Nigeria is currently experiencing a meltdown.
What should people in their 50s, and above bear in mind in a season like these?
I will address this question from two perspectives.
Those who have investments not performing well, and those who are looking for what to invest in.
For the first category of people, there is a tendency to fidget and sell off your stocks/ mutual funds in a hurry, and from a loss position.
Please don’t be tempted to do that.
Even if your investments are showing a loss position, what you are currently experiencing, is a paper loss. It doesn’t translate to actual loss until you sell.
So wait it out, wait for the market to rebound.
Resist the temptation to sell now.
If you have investments in agricultural investments, wait it out too, and don’t take on more risk in that asset class, except you are sure of your moves.
Transfer of wealth happens, when the fearful sell off their holdings in deperate times, especially when the markets are not performing well.
What this means is that when others are fearful and are selling off, you should be buying more, especially when you have the cash, and the opportunity to buy good stocks.
For the second category, if you are considering what to buy in a time like this, I’d advise you to go for low risks asset classes, such as money market mutual funds, dollar mutual funds, fixed income investments( treasury bills, government bonds) and if you have adequate cash, you may consider buying good stocks with guidance.
Hold on to your cash, especially in low-risk investment opportunities, until you are advised about very good investments.
Stay safe!
Lead Coach and Founder
Smart Stewards
