MAB Quarterly Review Q1 2026 - Cautious - Flipbook - Page 14
Investment insights
The importance of capturing the best days in the market
When the headlines tell us that the world is in
turmoil and markets are seemingly on a downward
trajectory, human nature tells us that we must
act. Our prehistoric 昀椀ght-or-昀氀ight responses are
activated, but the danger is no longer life or death,
it is whether to stay invested or 昀椀nd refuge in a
perceived safe haven.
As attractive as a safe haven may sound,
it may result in a trap. The idea of ‘protecting’
your investment may sound like the best
course of action, however, it can in fact be
the least appropriate course of action and
prove very damaging to achieving your
long-term objectives.
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That is because trying to time the markets on a
consistent basis has proven to be extremely dif昀椀cult,
if not impossible, over the long term. While it might
feel like just taking money off the table, in reality,
this is making a timing decision on when to sell
and forcing a decision on when to re-purchase.
Evidence tells us that for investors with a medium
or long-term outlook, the most appropriate
behaviour is to stay invested, in your agreed and
appropriate risk pro昀椀le, and accept that market
昀氀uctuations are part and parcel of a long-term
investment journey. It is important to remember
that by choosing to stay invested, you are taking
positive action and, in reality, adopting the strategy
with a greater probability of long-term success.
