MLC Market Watch

Here are six tips on how to stay focused during turbulent times:

1. Diversification is king. Investors with a well-diversified investment strategy that has been formulated as part of a long-term financial plan should not be unduly concerned with the market’s recent moves. The aim of diversification is to build and protect your wealth by ensuring your investments don’t all move in the same direction at the same time.

2. Risk and return are related. The higher the expected level of return, the higher the risk (or volatility) you need to be willing to accept. Therefore it’s important you have a realistic expectation of what kind of returns are achievable and sustainable over the longer term given your appetite for risk.
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