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3 ways Strictly Come Dancing can get investors moving

We explore the hidden message for investors in the UK’s favourite talent show.

Important notes

This article isn’t personal advice. If you’re not sure whether an investment is right for you please seek advice. If you choose to invest the value of your investment will rise and fall, so you could get back less than you put in.

On average almost 8m of us tune in to Strictly every Saturday. We can understand the appeal of all that glitter, gold and spandex, but there are some hidden delights in the blockbuster show.

Without realising it, millions of viewers are watching and rooting for couples that demonstrate great skills, which also align with what makes a great investor.

The determination, patience and versatility of your favourite dancer could teach you a lot more than the difference between a jive and quickstep. This article isn’t personal advice. If unsure, please seek advice.

1. Marathon not a sprint

This theme comes up pretty much every week. Perseverance, not giving up, ignoring the noise (in most cases, Craig Revel Horwood’s noise). This is the key pillar for what makes a good investor too.

Many investors will try to time the market. That means buying or selling when it feels right, on the back of good or bad news. But it’s almost impossible to call this with accuracy all the time. More importantly you risk missing opportunities. Data shows that over the last 30 years, missing just a handful of the best days in the market would have been a very expensive mistake in the long term.

HL data suggests investors who over trade in this way, rather than leaving investments to grow over time, tend to see bigger losses than those who are less active. Leaving your investments be, even when it feels difficult, means giving them the best chance to stretch their legs. Although remember to check up on them regularly to ensure that they are still meeting your objectives.

Sometimes this can be hard to do, but it can be easier if you invest little and often. That way you don’t face the immediate loss of a large lump sum, and it can mean a smoother ride as you average out short-term ups and downs. Investing monthly can be done through our regular investing service, for as little as £25 a month.

Remember though, there are no guarantees, unlike the security offered by cash, all investments rise and fall in value and you could get back less than you invest.

Find out more about regular investing

2. Don’t be afraid to mix it up

No one’s ever won the dance contest by performing the same routine every week. In order to do well, each couple has to perform a diverse mix of dances. Who can ever forget Ann Widdecombe’s Paso Doble?

The net effect of that of course is that even if a couple finds one type of dance challenging, the following week might be more suited to them, and they could get a better score.

And investors should embrace that way of thinking too. The term ‘diversification’ gets thrown around a lot. But that’s because it’s important. It sounds a bit jargony too – but it’s easier than you think.

If investments are diversified it means they don’t behave the same way - they are uncorrelated. So if one investment falls, the other could rise, and vice versa. For this reason, a diversified portfolio is one of the best lines of defence because it means a singular event shouldn’t adversely impact all your holdings.

It could be worth taking stock of what you hold, and if a lot of your investments are based on the same sector or region, consider making some changes.

The benefits of diversification and how it works

3. You don’t have to be a pro

If someone scores perfect tens in week one, it doesn’t necessarily mean that person will lift the glitter ball. The whole premise of the show is it gets people who don’t usually dance onto the floor, we’ve seen time and time again those who find it tough at the start often go on to improve and last into later stages of the competition.

Sadly, a lot of people don’t think investing is as glamourous as ballroom dancing, and if they’re unsure of how to start they simply won’t. And that means they’re missing the chance to get their money working harder for them.

Investing isn’t just for the professionals – it’s a lot simpler than you might think. It isn’t just for one type of person either, savings and investments aren’t just for older men, and it’s not just for retirement.

Perhaps you’d like your money to work a bit harder for you to help you afford that dream holiday, or house deposit and are willing to accept the additional risks. There are ways anyone can do this, if you’re unsure what to look for, take a look at our Wealth 50 list of funds. Funds can be a lower risk strategy as opposed to investing in individual shares, because they invest in a number of different companies, so risk is spread out. Funds are also run by full time managers, so you don’t have to make the nitty gritty day-to-day decisions.

As ever though, there are no guarantees and prices can fall as well as rise and you could get back less than you invest.

Wealth 50

Investing for Beginners

Chances are, the majority of those reading this won’t be champion dancers, or know what it feels like to waltz with Anton du Beke. But we think everyone has the ability to be an investor, and those that are more experienced can always improve. Leaving your investments to grow, holding a range of different investments, and having the confidence to give it a go in the first place, are some good rules to start you moving in the right direction.

Important notes

This article isn’t personal advice. If you’re not sure whether an investment is right for you please seek advice. If you choose to invest the value of your investment will rise and fall, so you could get back less than you put in.

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