It would just seem to be common sense that investors understand and appreciate the risks associated with investing. Unfortunately, many do not and are among the market’s biggest losers.
Glen Gowland, president and CEO of Scotia Asset Management, said in a recent interview that investors who ignore or fail to obtain investment advice tend to lose the most on the stock market.
The reasons can be many. From trying to time the market to simply feeling uncomfortable with an investment’s level of volatility, a common result is the investor buying high and selling low.
He said having an adviser and a financial plan are key elements to keeping investors on track.
Serge Pepin, head of investments at BMO Investments Inc., noted it is important for any investor to look at their whole portfolio, not just at specific funds or investments, when evaluating their investment position.
“The first question an investor should ask, regardless of cost, is ‘Why am I doing this and what is it I’m trying to get out of it?’ In a diversified portfolio, is there a way to minimize the downside as much as possible?”
Learn more about an investor options in this week’s print edition of BIV on stands and online now.