Moving on to current market conditions, global financial markets have retraced sharply in recent weeks following weaker-than-expected growth in the U.S. economy, contagion risk of the European sovereign debt crisis to larger member countries and prolonged negotiations over the U.S. debt ceiling. The selldown was further exacerbated by the downgrade of the U.S. sovereign credit rating by Standard & Poor’s from AAA to AA+ on 5 August 2011. These developments coupled with the increase in risk aversion among investors caused global equity markets to breakthrough key support levels and touch the year’s lows in early August before rebounding in mid-August.
Looking forward, equity markets are expected to remain volatile as investors continue to focus on global growth prospects and sovereign debt issues in the U.S. and Eurozone.
Given the volatile conditions in global financial markets and be an investor in unit trust portfolio, we have to reassure ourself not to panic at short-term market movements and to maintain a long-term investment view. Always be in mind the best strategy is to invest regularly and adopt Ringgit-cost averaging at all times. Ensure that our asset allocation is in line with the risk profiles to enable us to ride out market volatility. Investors need to understand that financial markets may be volatile in the short-term but the most important is we have to always remind ourself to keep the financial objectives in mind and not let the emotions influence the investment decisions.
Last but not least, Success people always work towards their goals with strategy.. If you think your wealth is worthless, just let it gone without wind...