Systematic Investing | Treasure Coast Financial

Without question, 2012,?year-to-date, has been?another challenging year for investors. Extreme market volatility can be unnerving, leading some investors to scale back on their contributions or pull out of the market altogether.

While it may seem counterintuitive, staying the course is one of the most effective strategies in times like these. When we lack confidence in the markets, investing a lump sum into stocks is not something a lot of us feel comfortable doing. But making regular investments on a consistent basis over time could turn the market?s volatility in your favor.

A systematic investment strategy creates the potential to turn a weak market into a profitable, long-term opportunity. Dollar-cost averaging is a term that may be familiar to you. It involves buying shares of an investment with a fixed dollar amount at regular intervals.

When share prices are low, your investment purchases more shares. When share prices rise, fewer shares are purchased. Continuing to invest during a market downturn allows you to accumulate a larger number of shares. Then, when markets regain lost ground, your investments increase in value.

This strategy is not guaranteed to result in a profit or protect against a loss. And, to be most effective, it requires continuous investing, regardless of fluctuating price levels. Maintaining a consistent investment pattern throughout the ups-and-downs of the market may be your best defense against the impact of short-term swings. Many find that this strategy helps them stay committed to investing money over the long term.

Let me know if an automatic investment program would make it easier for you to stay the course. I can be reached at 772-283-6342 or by email,?stevem@tcfin.com.

Source: http://www.tcfin.com/2012/08/27/systematic-investing/

heisman cp3 lakers news rachel crow rachel crow steelers browns va tech