Market volatility can be unsettling, especially in our current 24/7 news cycle environment, where every fluctuation seems magnified. In Malaysia, where the economy and markets are influenced by global trends, it’s easy to get caught up in the noise. But it’s crucial to remember that staying grounded in your financial plan is key.
In the early days of investing, many would only check their accounts once or twice a quarter when receiving paper statements. News about the Bursa Malaysia or international markets like the Dow Jones or S&P 500 was something you might catch on the nightly news, not a constant feed on your phone. Today, with real-time updates and social media amplifying every market movement, it can feel as if your financial future is being determined minute by minute.
At Coreplus Advisory, our Life-Centered Financial Planning process incorporates all relevant data that could impact your finances. However, we also take a broader view of the markets, your plan, and your life goals. We encourage you to do the same by stepping back and focusing on three fundamental investing principles:
- Learn from the past.
Market downturns are inevitable, but history shows that recovery often follows. For instance, consider the 1997 Asian Financial Crisis, which heavily impacted Malaysia and other Southeast Asian countries. While it was a challenging period, those who remained patient saw the market and economy recover over time. Similarly, during the global financial crisis in 2008, many feared another prolonged downturn, yet markets eventually rebounded, rewarding those who stayed invested. These historical lessons remind us that market volatility, while uncomfortable, is often temporary. On the $Lifeline of a well-executed financial plan, these dips become small blips in an overall upward trend.
- Focus on the present.
Rather than getting caught up in the daily market movements, it’s important to stay focused on your life and immediate financial needs. Whether the markets are up or down, your life continues—bills need to be paid, milestones are approaching, and long-term goals require attention. Your Life-Centered Plan is designed to support you through these periods of volatility while keeping your long-term goals on track. A balanced and diversified portfolio, tailored to your specific needs, gives you and your financial planner the flexibility to make adjustments as needed. For instance, during periods of market downturns, opportunities may arise, such as tax planning strategies or investing in undervalued assets. Even if the best course of action is to stay the course, it’s a good time to review your financial picture, cut unnecessary expenses, or set new financial goals.
- Prepare for the future.
While it’s impossible to predict market movements, you can plan for life’s major events. Whether it’s purchasing a home, funding your child’s education, or planning for retirement, having a clear financial strategy helps you stay on track despite market uncertainties. At Coreplus Advisory, our Life-Centered Financial Planning approach helps you achieve the best life possible with the money you have at every stage. Keeping the bigger picture in mind can boost your confidence in your financial plan today and keep you excited about your future.
If you have any questions about the latest market developments or any aspect of your financial plan, don’t hesitate to reach out to us. We’re here to help you navigate these times with confidence.
