Do This to Increase Your Returns
Investors can increase their returns by investing aggressively when others are selling.
Global markets have been on a tear for the first half of 2023, clocking in almost 20% of returns up to the end of July. If you had missed investing at the start of the year, the first buying opportunity would have been from February to March 2023 during the crisis of confidence which led to the failure of Credit Suisse and some regional banks in the U.S.
Since then, global markets have been on a steady decline starting in August up to most of October, down -10.43% from the high. In a sudden turn, last week, global markets bounced up violently, rising nearly 6%.
Buying opportunities are often consistent with pessimism and fear in markets.
In “How do Returns Happen”, we wrote that “Markets rise and stall, tumble and fall, but eventually recover and invariably rip higher without notice” rings ever-true.
While it is often impossible to catch the absolute bottom of these buying opportunities, our advice to clients have always been to invest heavily around market declines. We have been writing about these buying opportunities in 2020, 2022, and the recent decline starting in August here.
However, investors must be careful not invest blindly during every market decline as you might get caught if it ends up being a large extended one. Our risk models informs us about the state and health of global markets, informing us if the declines are likely to be short-lived. In this way, we know we are able to pick up bargains and boost our long-term return safely with confidence.
Most of us would trust an accomplished physician to manage our health, after all, physicians have specialised training, real-world experience and access to tools outside the reach of the general public. Most importantly, they took an oath to prioritize the patient’s health over their own interests.
In the way same, GYC adapts insights from financial science to each client’s individual situation. We look at clients’ financial health holistically and work with them to create a plan that aims to accomplish their unique goals. We are a trusted partner who can help when times are tough.
If you would like to know how you can invest with a peace of mind and increase your probability of success, click here to schedule an exploratory chat with us. (Complimentary 30-minute session).