Best Financial Advisors in Wolverhampton

Investments are falling in value – should I move into cash until the markets recover? Stock markets always moved through cycles of up and down, and we are in the middle of a down period right now. Investors can be tempted to sell their investments and wait until the market recover. Is this the right thing to do? Moving your investments into cash is not a great idea. The first issue is that cash is being severely eroded by inflation currently. And if you do move to cash, how do you decide when to go back into the market – There is no early warning system telling investors when to move to cash or when it is safe to invest again. Investors and financial advisers alike do not have a crystal ball. No one can time the market and the decision to sell and move into cash is seriously affected by the investor’s emotions in the moment. Fear leads to selling and moving to cash when it may not be the most rational course of action. Only hindsight will tell us if we made the correct decision.