When the markets scare you

They say that if your dreams don’t scare you, they’re not big enough. But, when it comes to the practical side of investing, it’s entirely the opposite. If you’re scared, the answer may not be to simply invest more. The first thing to do when the markets scare you is to get in touch with your personal advisor.

This is because we’re all different, we have different needs, situations and risk appetites. All of these play into our fears; essentially, what scares or excites us. Whilst the financial profession and complex array of products are full of advanced mathematics, they’re not detached from our emotional intervention – and that’s why we should always check in with our advisor (or pool of experts!).

And then, typically, they should advise you to do one of three things…

1 – Do nothing – stay put

2 – Try to beat the markets

3 – Explore alternatives and diversify

Doing nothing

It’s helpful to remember that every choice we make in life has consequences and risks, so our goal is not to avoid risk entirely but to mitigate risk – in every life decision. We will risk loss by doing nothing, but we will experience risk by taking action, and this is a mathematical certainty. This is why it’s important to check in with a third-party expert (our advisors) who can help us see the bigger picture when we are limited by our fear.

Trying to beat the markets

Often, the first reaction to poor fund or market performance is to switch funds or asset classes. It’s what we’re most comfortable with and seems to be the most logical switch. If one company is struggling and its stocks are falling, let’s jump to one that is performing better. But, unfortunately, this doesn’t always lead to growth.

Explore alternatives and diversify

Diversification through leveraging alternatives and adding variety to an investment portfolio has proven, throughout history, to be the best way to mitigate risk. And this is where litigation finance offers an incredible opportunity, regardless of what the market is doing!

With two decades of experience in litigation finance, our founder, Laura Mann, has always believed that the journey to sustainable wealth management lies in securing options outside of the traditional marketplace. This requires a unique set of skills and networks to create opportunities that will consistently hold up and build a track record of success.

Greenpark Platinum has achieved this and continues to engage with a growing client base to secure a reputable and reliable place in the alternative investments space..