49 years is a mighty long time…

As a Waterford woman with one serious (sporting) passion for Waterford hurling, I spend my life living in hope! Every year I start off with the same expectations that this will be the year, the year that Waterford will finally win an All Ireland. Remember it was 1959 since this happened previously. So far my hopes have been dashed. Nonetheless, my enthusiasm is still rampant this year as I head off to various stadia, secure in the knowledge of a new Clare man at the helm!!

Of course, this is like investments, where past performance is not an indicator of future returns and where returns can rise as well as fall. Furthermore, if you are not in, you can't win.

Despite all the clichés, being invested in the markets is a matter of timing, so you don't peak too early or come good too late!

Historically, when the market climate is uncertain, investors can loose sight of their long-term goals, often being tempted to postpone new investments or even sell current holdings with the aim of reinvesting when the stock market stabilises.

We would all like to be able to predict the movements in the markets, buying at the bottom and selling at the top. This is called market timing.

But a bit like Waterford, being in there for the long haul demonstrates the long-term performance of equities is not necessarily about timing but about 'just being in the markets'. Research has shown that investments made when the market has already begun to recover and those made when it is still falling have still paid dividends.

In contrast, waiting for a better time to invest can cost one dearly, as investors who remained fully invested in the UK market over the last five years would have received returns in excess of 60 per cent, whereas those who were out of the market in the ten best days would have seen returns cut to 40 per cent, and those out for the best 40 days to just four per cent (source: JPMorgan).

Many of the stock markets' best days have come immediately after a sharp fall!

Perhaps many of Waterford's best days will come after sharp defeats! Meanwhile, as the chant goes 'Waterford, Waterford, Waterford'… and here's to September!

HC Financial Services, 20 years serving your financial needs. www.hcgroup.ie.

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