Good investment habits are more important than timing the market

Forget about timing the market

Do you ever feel that it might be ‘too late’ to invest in a certain company or a market sector because you view the market as either being ‘too expensive’ or ‘overpriced?’

This general view on the market will cause you to miss out on investment opportunities in companies or sectors who might turn out to have a fantastic return in the future.

It is important to remember that investing smaller amounts on a more frequent basis as opposed to investing one lump sum for a period of time is two different forms of investment and will require different investment plans. The fact of the matter is, market timing should never be the main reason for buying company shares as it is mostly driven by an impulsive decision and it will also cause you to prematurely sell your shares as a habit market timing also leads to prematurely selling your shares.

Don’t ever get sentimental about it

Now of course certain shares become more attractive when they are trading at a discount, however a discounted trading price does not necessarily tell us at what price the share will trade in the future, meaning that you never know when you are in fact timing the market correctly. When a certain sector or a specific share is trading at a meaningful discount it calls for further investigation prior to making an investment decision. 

It is important to remember that things trade or sell at a discount for a reason. Sure, there might be a fair amount of a share’s discounted price attributable to a market overreaction or a sudden scare in the market, but it is important to note that getting in to a habit of making investment decisions based on market timing might not be a viable long-term investment solution which is suitable for your future income needs and investment plans.

See a qualified and experience Financial Advisor 

Before you purchase a share it can always be useful to see a qualified and accredited Financial Advisor before doing so. If you are investing funds that you have future requirements for it would always be to your advantage to get an opinion from a professional or from a seasoned person within the industry.

Visit our website to see how we can help you with structuring an efficient, well-suited investment plan that will help you reach your future investment goals! 

 Who are we? 

Caveat Capital Management is a strategic advisory firm based in Cape Town. Caveat Capital Management specializes in structuring tailor-made investment portfolios that serve your needs now and grow with you as your needs change. Caveat works to maximize your gains and minimize the risk.

What we offer

Caveat Capital Management has a competitive fee structure that incentivizes the portfolio manager to perform and the remuneration is highly linked to the performance of the portfolio. Caveat Capital MGMT (Pty) Ltd is a CATII – Authorized Financial Services Provider (FSP no. 24777) registered at the South African Financial Services Conduct Authority (FSCA). Meaning that we have the required licensing to structure full-discretionary portfolios structured to your needs.  

Disclaimer

This report does not guarantee the suitability or potential value of any information or particular investment source. The information provided is not intended to, nor does it constitute financial, tax, legal, investment or other advice. Before making any decision or taking any action regarding your finances, you should consult a qualified financial adviser. Nothing contained in this publication constitutes a solicitation, recommendation, endorsement or offer by Caveat Capital Management, but is merely an invitation to do business.

Information and content

The information in and content of this publication are provided by Caveat Capital Management as general information about the company and its products and services. Caveat Capital Management does not guarantee the suitability or potential value of any information or particular investment source. The information provided is not intended to, nor does it constitute financial, tax, legal, investment or other advice. Before making any decision or taking any action regarding your finances, you should consult a qualified financial adviser. Nothing contained in this publication constitutes a solicitation, recommendation, endorsement or offer by Caveat Capital Management, but is merely an invitation to do business.

Caveat Capital Management has taken and will continue to take care that all information provided, in so far as this is under its control, is true and correct. However, Caveat Capital Management shall not be responsible for and therefore disclaims any liability for any loss, liability, damage (whether direct or consequential) or expense of any nature whatsoever which may be suffered as a result of or which may be attributable, directly or indirectly, to the use of or reliance upon any information provided. Past performance is not an indication of future performance. Caveat Capital Management does not provide any guarantee regarding capital or performance.

Caveat Capital MGMT (Pty) Ltd is a CATII – Authorized Financial Services Provider (FSP no. 24777) registered at the South African Financial Services Conduct Authority (FSCA).