Page 45 - DIY Magazine March 2018

Since peaking at 20,932 on January 5th, the index has fallen approximately 5.4%.
There’s been a little recovery since the low of 9th February, but at that point many were asking whether this was the long-awaited ‘correction’.
The question begins to rear its ugly head - ‘should I sell now, and preserve my gains?’
NOBODY EVER LOST MONEY TAKING PROFITS
The determination to retain my holdings is something I’ve had to develop over time.
One of the biggest things that has helped me, is my understanding that I cannot time the market, and shouldn’t even try. (Ironically I’ve just started reading a book called ‘Yes, You Can Time The Market’).
Who knows where we go from here; was it a quick 5% blip on the radar, or are we seeing the beginnings of a major market correction/fall?
Who knows? Correction; nobody knows! But let’s look at a one year time frame:
At the low on the 9th February, we’d given up around 7 months of gains; not pleasant, for sure.
However, not the end of the world for someone holding long-term, in fact, it presented quite a nice opportunity for those with cash.
But look at the total history of the FTSE 250:
Can you even see the most recent fall? It is but a blip on a relatively steady upward slope.
Obviously the early 2000’s and 07-09 were more significant but even they look less intimidating over time.
AND MY POINT IS?
If you’re investing for the long-term, think long-term; if you’re selecting equities to hold long-term, hold them for the long-term.
Don’t change your rationale, or your mindset, if markets get a bit choppy.
If you’ve built a portfolio full of quality companies, don’t hamper their progress by constantly interfering with your holdings.
That’s my opinion. Do your own research. Happy investing!
Chriss
@britishinvestor
45 DIY Investor Magazine | Mar 2018