Time flies and in the blink of an eye, it is the end of the year, looking back on the whole year, the market has repeatedly broken the bottom repeatedly**, and investors' emotions have also fluctuated and felt tired. In the face of repeated grinding of the bottom, confidence and patience are consumed bit by bit, shrouded in this negative and pessimistic bottom emotion, looking at the lower and lower market value in the account, should we continue to invest regularly?
Emotions are God's gifts, but they are also human weaknesses. When the market is at a relatively low point, it is easy to be coerced by emotions, and it is difficult to effectively implement scientific decision-making.
History tells us about experience
In the face of the downturn, it seems that the more you buy, the more you fall
Now that the market is not good, can you stop regular investment first, and then buy it when it recovers?
In the face of these common questions, historical experience has already told us the answers.
Data**: wind, statistical period: 2007 1 1-2021 1 1. Historical index change data is for reference only and is not indicative of future performance. The market is risky and investors should be cautious.
Looking back at the market over the past 20 years, four distinct phases were selected for analysis: October 2007 to November 2008, November 2010 to December 2012, June 2015 to January 2016, and November 2017 to January 2019.
The income of pausing regular investment when the market is relatively low
The above data is a backtest simulation data calculated according to a specific simulation method, which is for scenario display only, not actual investment data, and is not intended as investment advice or future income guarantee.
Suppose that the regular ** type ** index is fixed at the high point of the stage, and stops when it reaches the lowest point, and simulates the four ** interval calculations in history. Although the yields are all negative, they can be seenThe rate of return of continuous investment operation is still higher than that of one-time investment
At a relatively low level in the market, we will insist on regular investment to the next stage
The profit situation of the high
The above data is a backtest simulation data calculated according to a specific simulation method, which is for scenario display only, not actual investment data, and is not intended as investment advice or future income guarantee.
Suppose you start to invest in the ordinary **type** index at the stage high, and insist on surviving the lowest point until the next relative high point to sell, simulating the four ** interval calculations in historyThe rate of return of the regular investment strategy is likely to be higher than the rate of return of the one-time investment
In general, when the market is in the ** phase,Whether it is the degree of loss control or the degree of future gains, the regular investment strategy is more likely to be better than the one-time strategy。If investors want to get positive returns, they should insist on regular investment until the market returns, and don't run away at the low point.
Why is it difficult to adhere to the regular investment strategy when the market is down?
I understand the reason, but seeing the market falling endlessly, it's really difficult to insist on regular investment. This is a common "loss aversion psychology" for investors in behavioral finance, after all, people are not completely rational, and they are easily manipulated by emotions to affect judgment and behavior. In the short term, market sentiment is a significant contributor to volatility。The influence of emotions will act along the market investor market, investors will react irrationally to the pessimistic atmosphere of the market, and many irrational investors will contribute to the imbalance of the market, and then further affect the mood of investors, creating a vicious circle. Therefore, it is not necessarily the bad market that affects our investment returns, but also the irrational operation caused by our bad mood。The bottom mood is like a flood beast, if you want to be the best, you must adhere to the investment discipline of regular investment.
Adhere to the "three determinations" cheats of regular investment
Regular payouts
*One of the characteristics of regular investment is that it is "untimely", and a sum of money is automatically allocated for investment on the same date every month. On the one hand, it eliminates the hard work of investors to monitor the market, and on the other hand, it can also use discipline to avoid personal decision-making errors in the judgment of trading time and improper operation affected by irrational emotions. Regular investment has a certain degree of compulsion, which can help investors overcome the psychological hurdle when the market is down.
Quantitative amounts
The second key to regular investment is to invest the same amount every time, and get a smaller share when it is high, and accumulate more share when it is low. In this seemingly passive way, it automatically contradicts market fluctuations to dilute costs. In addition, investors can independently choose the amount of regular investment in each period, so that the rise and fall are within their acceptable range, which is more conducive to a stable mentality and improves the investment experience.
Stable for a long time
In addition to the operation to be "regular and quantitative", the mentality should also be stable, time is an indispensable condition for investment benefits. In the short term, the market will be unreasonably mispriced, and in the long term** will return to value. Insisting on regular investment is to hedge various unfavorable factors on a long time line, smooth out irrational market fluctuations in stages, and use the accumulation of time to improve the winning rate of investment.
Don't turn away from the trough, and don't come to the top. Adhere to the discipline of regular investment and pass through the haze at the bottom.
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*There are risks and investment should be cautious. The manager undertakes to manage and use the assets in good faith, diligence and due diligence, but does not guarantee a certain profit, nor does it guarantee a minimum return. This material is promotional material only and does not constitute any investment advice and is not intended as any legal document. Investors should fully understand the difference between regular fixed investment and lump sum deposit and withdrawal. Regular investment is a simple and easy way to guide investors to make long-term investments and average investment costs. However, regular investment does not avoid the inherent risks of investment, does not guarantee that investors will obtain returns, and is not an equivalent financial management method to replace savings. Investors should carefully read the "Contract", "Prospectus" and "Product Key Facts Statement" and other legal documents, fully understand the risk-return characteristics and product characteristics, and fully consider their own risk tolerance according to their own investment objectives, investment period, investment experience, asset status and other factors, make rational judgments and make prudent investment decisions. The investment shall be purchased and redeemed through the manager or other institutions with the qualification of sales business, and the list of sales agencies can be found on the official website of the manager and relevant announcements.