Mondial Academy: It ain’t over till the fat lady sings


"It ain't over till (or until) the fat lady sings" is a colloquialism which is often used as a proverb. It means that one should not presume to know the outcome of an event which is still in progress. - Source Wikipedia


Many investors may be inclined to check their investment balances in reaction to current market news on volatility. Yet reacting to a sudden market fall is exactly what you shouldn’t do. Volatility is frightening – being frightened influences our well-being, and it doesn’t necessarily lead to good decisions. 10 things to remember when volatility strikes:

  • Volatility is a normal part of long-term investing

  • Long-term investors are usually rewarded for taking equity risk

  • Market corrections can create attractive opportunities

  • Avoid stopping and starting investments

  • The benefits of regular investing tend to stack up

  • Diversification of investments helps to smooth returns

  • A focus on income increases total returns

  • Investing in quality stocks delivers in the long run

  • Don’t be swayed by the sweeping sentiment of the herd (herd mentality). The herd runs from fear not fact.

  • Passive investments (i.e. ETFs) are popular in rising markets - but ineffective against active investing styles in volatile markets


WHEN DOES THE FAT LADY STOP SINGING?


The Fat Lady stops singing when we are a near-to-normal greedy again market. That might take some time.


DEALING WITH THE FAT LADYS TUNES?


The best strategy for “lump sum” investors is to “average” the investment in order to benefit from the range of prices. Your 100 widget investment divided by a number of months dilutes the price range. Of course, for regular savers- the averaging is provided by the systematic monthly (or regular) payments. For regular savers: the fat ladies tune should be embraced- this is a great time for buying into volatile markets.


Need that explained? Speak to one of our advisers.

© 2019 Mondial [Dubai] LLC

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