The collapse recorded by the markets in April He had an impact on the trust of investors and consumers, who touched historical minimums in the United States. The lack of visibility on the future has fueled uncertainty And this was reflected on performance expectations, on the risk aversion of investors and on wallet strategies. In a difficult context Like this – explain the experts of Pictet, the main European patrimonial manager – it is important that the customer has clearly clear Some key rules of correct asset management.
No sudden decision
According to experts, it is not in a phase like this that must be made decisions for “Running for cover”. By their nature, financial markets are made of climbs and descents and nobody knows with absolute certainty where the market will go tomorrow, but it is proven that the sharehold asset class is the absolute portfolio component more suitable to bring performance in the medium-long period. In other words, moments of difficulties like those we live today must not trigger panic, at most they must help the customer to understand if, thanks to his planning and the tools he owns, he feels quiet.
There are also opportunities in crises
There second rule Not written is that the best are born from the phases and moments of crisis investment opportunities. Looking at some of the most recent shocks with the rear -view mirror, the financial markets have historically shown how periods of strong corrections are followed by phases of important reboundscapable not only of recovering the collapses, but also to kick off new stable growth cycles over time. A year after the minimums touched following a market shock, the price lists have almost always been able to reset the losses by returning to profit.
Wait to face the “Panic Selling”
In front of the “Panic Selling” taken on the markets, you need to have a ponderate attitude. Massive sales have always accentuated the price movement of prices, exasperating the real scope of the shock. And in fear that the market dropped, the investors did the most wrong thing that can be done: liquidate their positions (Loss Aversion) and then wait for the minimum point to return (market timing). There third rule therefore recommends of wait, Because the weather rewards the investor capable of not reacting his belly to a volatility phase. If we look at the cumulative performance of the S&P 300 index from 1994 to 2024, the best possible worlds is precisely that of the investor who remained invested with patience over time. Trying to predict the market, and therefore risk being out during its Massimo phases, it cost very expensive.
In summary, to cope with geopolitical turbulence and volatility peaks that we could continue to see on the markets in the coming months, it is considered essential to keep in mind Three key elements portfolio management: risk managementboth short and long -term, diversification equity e abstention from chasing the news of the moment.
