What to do when the stock market is up
If you’re already investing, the best thing to do at all times is simply stick to your plan. You’ll know what your goals are and what you’re trying to achieve. You’ll also know how much money you can afford to invest each month under your current circumstances, and how long your investment time horizon is.
Markets being up shouldn’t be a reason to start selling your investments and realising any gains you’ve made ahead of time, and it also shouldn’t be the only reason for looking at rebalancing your portfolio. Reinvesting profits is one of the best ways to supercharge your investment account, and it’ll help to maximise your gains within your chosen timeframe.
What to do when the stock market is down
On a similar note, when the stock market is down, it shouldn’t be a reason to panic. Over the last 50 years, the market has experienced record highs as well as record lows. But it all evens out over time. That’s why a useful metric to use when looking at stock market performance is average annual returns.
In this way, stock market declines aren’t something to fear, because over time they’ll be smoothed out by stock market gains. That’s why investing is referred to as being best for the long term (at least 5 years), and why it’s always better to look at the long-term picture when you’re investing, rather than paying attention to or changing your plan because of short-term market fluctuations.
How to invest with Moneybox
Our investing proposition was built with one thing in mind: to make investing with Moneybox easy, whether you’re starting from scratch or a seasoned hand. You can jump in with our Starting Options, which are just that – a starting portfolio of investments, handpicked by experts.
Or, if you want to take more control over your investments, you can customise your Starting Option to access our full range of fundsFunds, also called ‘tracker funds’, are financial instruments that have been set up to match or ‘track’ the price of a market index. Investing in a fund lets you get exposure to different financial assets like shares and bonds, without having to buy them directly., and if you’re investing with a Moneybox Stocks & Shares ISA, our range of US stocksStocks, also known as shares or equities, represent units of ownership in a company..
You can open a Stocks & Shares ISA in minutes. Plus, if you’ve got investments in an ISA elsewhere, you can request a transfer to Moneybox entirely in-app. There are no paper forms to fill out, and it only takes a few minutes. Download the app today to start investing with Moneybox.
* Past performance is not a reliable guide to future gains. You may get back less than you invest. Annual returns are net of fees and based on the scenario of £1,000 invested in 2013 followed by monthly deposits of £50.
All investing should be long term (min. 5 years). The value of your investments can go up and down, and you may get back less than you invest.