On average, the returns from global stocks are around 7.5% a year (in SGD). Investing when markets are depressed helps bump that number up a bit more.

So when are markets depressed? One simple way to tell is when you feel that you are making a mistake in investing. It is when the TV, newspaper, radio are all telling you to hide in cash. It is when famous people are declaring the end of times.

The first half of 2023 locked in one of the best half-year performances for global stocks at 14%, far above the average return of around 4%.

Recall the scary time in 2020 as the first news of COVID outbreak hit the world, markets fell as fear and uncertainty gripped investors. Fast forward to 2022 when the Russian war and rate hikes were all anything could think about, markets shuddered as well. Should you have gone to the safety of cash or very safe instruments to wait to enter when you felt more comfortable, you would have missed the train.

Global stocks are up +56% since 3 years ago.

We wrote about the opportunity to pick up depressed stocks during the COVID-19 outbreak back in 2020. We also wrote about the opportunity to pick up stocks just before the bottom hit in October of 2022.

Markets rise and stall, tumble and fall but eventually recovering and invariably rip higher without notice.

That’s how returns happen.

An advisor walking hand in hand together with you on your investment journey can help you with your anxiety or provide a second opinion to check whether you are on the right path.

In the same way that you would not attempt a high risk activity such as sky-diving without professional supervision, investors can benefit greatly by relying on an adviser — having the peace of mind knowing that their plan is in the hands of a professional.

If you would like to get started on protecting and growing your wealth, click here to schedule a exploratory chat with us. (Complimentary 30-minutes session)

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