In one of the first analyzes in February, I commented on a very interesting fact, namely that in all years with an index closure in January (we always talk about ) greater than 5%, the year has always closed in the positive (in 100 % of cases).
After 2 months, and despite the banking crisis (if we want to call it that) the first quarter ended positively, and here we have another statistic (see below):
Here too, after a positive first quarter, in 100% of cases the full year always ended with a “+” sign.
This while investors remain skeptical, but for the usual problem: many think that investing is the equivalent of betting on what the market will do in a month’s time or in a year’s time.
I’ve toured many consultancy networks and met many clients (especially Private) talking about this, and the objection is always the same: what if I buy now and the market goes down?
And my answer is always the same (actually there are 3):
- Thinking like this, you missed (in the meantime) almost 6 months of increases, of which no one talks about, but that since the low in October the markets have been positive hardly anyone notices it
- What do you want even another year of declines to change if your strategy includes a 7-8 year horizon? (I don’t want to say 10 because I don’t want to irritate anyone)
- Markets go down by nature, not to spite you, but they don’t even know who you are
By the way I add the image below, on average the stock market drops by 3% over 7 times a year. The 10% corrections occur about once a year and the 15% corrections once every year and a half.
That’s how markets work, period. Descents are part of the very nature of stocks. Those who are unable to bear a market downturn should rather put their money in deposit accounts or leave them in the current account (inflation then takes care of eroding savings in real terms).
So let’s enter the post-Easter period and think about the rest of 2023, with the correct approach. We leave it up to the soothsayers (or liars) to answer the question “what happens tomorrow?”
You can also register for free to the next webinar on April 27th “Investing in bonds: how to include them in your portfolio and how to evaluate a single bond” at THIS LINK
Until next time!
“This article was written for informational purposes only; it does not constitute a solicitation, offer, advice, consultancy or investment recommendation as such it does not intend to incentivize the purchase of assets in any way. I remind you that any type of asset is valued from several points of view and is highly risky and therefore, every investment decision and the related risk remain the responsibility of the investor”
