The world’s financial markets have experienced a highly tumultuous 2020, with this having been borne out by the performance of stocks and equities over the course of the last 12 months. In the case of the Dow Jones Industrial Average (DJIA), for example, this index dropped by an estimated 8,000 points in just four weeks between February 12th and March 11th. However, as financial advisor have noted, this has since recovered to a staggering 30,199 points as of December 14th, while the market is poised for further growth in the near-term. With this in mind, investors may well benefit from hiring a financial advisor as they look to plot their way through the madness. But what are the precise pros of this action and are there any pitfalls when deciding to go it alone?
Many of the pros associated with hiring a financial advisor are universally applicable, such as the peace of mind provided by knowing that a professional wealth manager is in charge of your investment and monitoring your finances.
You can also use financial advisors and wealth managers to mitigate the precise risks associated with specific markets, particularly when engaging in forex trading and similarly volatile pastimes.
These facts all support the primary advantage of hiring a financial advisor, who will ultimately serve as a qualified expert who’s well-placed to manage your portfolio and recommend strategic changes as and when required.
It can also be argued that hiring a financial advisor enables you to navigate your way through an incredibly volatile global climate, which has been undermined by the coronavirus pandemic and the uncertainty caused by the result of the US election.'
If you want someone with the essential skills, experience, and knowledge to help you grow your investments over time, then you should definitely go and hire certified financial advisors. They can help you manage your investments well even amidst fluctuations in the financial market and even if the global economy is experiencing negative growth.
Even if you feel as though you have knowledge of a particular financial market or asset class, there’s no denying that having a certified and accredited advisor in your corner can help to inform your decision making over time while also enabling you to identify new investment opportunities going forward.
The latter point is particularly important, especially as you look to diversify your interests and scale your portfolio in line with experience and profitability.
Even on a fundamental level, the financial market is incredibly well-regulated and governed by complex legislation, which is subject to change and evolution over time.
As a result of this, your investment portfolio could well be undermined by the failure to recognize or factor in changes in legislation, placing your capital at risk and exposing you to potential financial sanctions.
You’ll also have no expert advice to rely on when organizing your finances, while you won’t be able to access an alternative perspective when considering investment opportunities.