Our concern is about QE tapering and your investments. When Fed Chairman Powell announced the plan to taper he also noted that there will be no immediate increase in interest rates at least not in the first half of 2022.
https://youtu.be/w6lqHD0HX90
By reacting quickly as economic conditions change, high performing businesses stay successful and grow revenues and profits even in economic times like these. How do they do this when their competitors so often are being battered and losing market share?
High performing businesses know that Focused Scenario Strategic Planning puts them ahead of the curve and “5 scenario planning” creates the action steps needed to react quickly as conditions change.
Our concern is about QE tapering and your investments. When Fed Chairman Powell announced the plan to taper he also noted that there will be no immediate increase in interest rates at least not in the first half of 2022.
https://youtu.be/w6lqHD0HX90
By reacting quickly as economic conditions change, high performing businesses stay successful and grow revenues and profits even in economic times like these. How do they do this when their competitors so often are being battered and losing market share?
High performing businesses know that Focused Scenario Strategic Planning puts them ahead of the curve and “5 scenario planning” creates the action steps needed to react quickly as conditions change.
ROI on Treasury Inflation Protected SecuritiesInvestingTips
Is the ROI on Treasury Inflation Protected Securities sufficient to stay ahead of inflation and protect you from getting negative real interest rates? And, what happens with TIPS if the economy goes into a spiral of deflation and negative interest rates?
https://youtu.be/4EqLJlw-7EE
When setting expectations,
it’s helpful to see the range of outcomes experienced
by investors historically. For example, how often have
the stock market’s annual returns actually aligned with
its long-term average? Better yet, how often are the markets positive?
Still keeping your money on the sidelines because you are nervous about the market? Take a look at this article to see some of the unintended risks of inaction.
A new client recently suggested that since the market is at a top (her characterization) it may make sense to set up a more conservative portfolio allocation, her concern being that she
might invest in equities right before the market falls apart. The problem with this line of reasoning is that we can only see market tops in hindsight.
Five years after the worst economic crisis of our lifetimes, we are still feeling the after-shocks around the world.
Our recent financial past seems to herald one certainty for our collective
financial future: The investment world we grew up with has changed utterly.
Conventional wisdoms shaped by decades of high-return investing — first in equities from 1982 to 2000, then in fixed income markets over most of this century — need to be reexamined, revised, or even scrapped.
ROI on Treasury Inflation Protected SecuritiesInvestingTips
Is the ROI on Treasury Inflation Protected Securities sufficient to stay ahead of inflation and protect you from getting negative real interest rates? And, what happens with TIPS if the economy goes into a spiral of deflation and negative interest rates?
https://youtu.be/4EqLJlw-7EE
When setting expectations,
it’s helpful to see the range of outcomes experienced
by investors historically. For example, how often have
the stock market’s annual returns actually aligned with
its long-term average? Better yet, how often are the markets positive?
Still keeping your money on the sidelines because you are nervous about the market? Take a look at this article to see some of the unintended risks of inaction.
A new client recently suggested that since the market is at a top (her characterization) it may make sense to set up a more conservative portfolio allocation, her concern being that she
might invest in equities right before the market falls apart. The problem with this line of reasoning is that we can only see market tops in hindsight.
Five years after the worst economic crisis of our lifetimes, we are still feeling the after-shocks around the world.
Our recent financial past seems to herald one certainty for our collective
financial future: The investment world we grew up with has changed utterly.
Conventional wisdoms shaped by decades of high-return investing — first in equities from 1982 to 2000, then in fixed income markets over most of this century — need to be reexamined, revised, or even scrapped.
Emerging markets are an important part of a well-diversifed global equity portfolio. However, recent history reminds us that they can be volatile and can perform differently than developed markets. In this article, we provide a longer historical perspective on the performance of emerging markets and the countries that constitute them. We also describe the emerging markets opportunity set and how it has evolved in recent years.
"The Patience Principle" is an article written by Jim Parker, Vice President at DFA Australia Limited, for Dimensional Fund Advisors Outside the Flags column.
Market volatility is part of investing in stocks. But how often does the market turn down? What is the long term impact? For buy-and-hold investors, it is important to have some perspective on the vulnerabilities and resiliency of the stock market.
A look at how we got into this mess of a financial meltdown, what to do in the midst of it, and how to capitalize going forward. This presentation illustrates the need of hiring a professional advisor to help you manage your emotions during times of uncertainty.
A Target Retirement Income Plan is a nonqualified, supplemental, after-tax executive retirement benefit program that changes the focus from return on investment to certainty of predictable income in retirement.
Wallet4Wealth delivering you a monthly news letter to manage your personal finance. In our previous issue we discussed about India being in a Sweet Spot! Amidst current Global disturbances, FIIs are looking at India as a safe zone for investments; our stringent trade policies and huge consumer base is an unsaid attraction for every investor. Hence most of the investment experts are bullish about Indian equity market.
However the key thing to understand here is - where to invest? It looks promising but costly, Energy & Infra looks cheaper and attractive, large Cap is safe but unable to create enough alpha (returns)...... so a perfect Asset Allocation is must to be followed by every investor. Read more about some SMART Mutual Fund schemes or categories which provides easy maneuvering between the Assets, Sectors and Securities.....
If you want to give any feedback you can suggest us in the comment box. Also do like and share to motivate us so that we will provide you latest information in our next newsletter. For more update visit our website https://wallet4wealth.com/
Thank you.
The monthly newsletter by seeman fiintouch LLP APRIL 2022Ashis Kumar Dey
STAY FIRM - INDIA IS DOING WELL
Trending MF Themes
Equity Market is at a pause – NIFTY &SENSEX is down by almost 2% from its 31st March closing.
What is the best method to create good wealth ?
DESPITE SEVERAL GLOBAL DISTURBANCES, INDIA IS
DOING QUITE WELL AS COMPARED TO OTHER ECONOMIES
WHAT IS THEME BASED INVESTMENT
WHICH IS A BETTER STRATEGY ? BUY & HOLD
OR ACTIVE RE-BALANCING ?
FILE YOUR INCOME TAX RETURN
Outlook Summary
Global growth trends remain higher as world experiences synchronized recovery
Maturing earnings growth cycle could increase focus on excessive valuations
Global central banks attempting to thread the needle on policy normalization
Mid-term elections heat up as cyclical bull market approaches maturity
Stock market volatility likely to rise in 2018 and test ability of investors to look past the noise. S&P 500 expected to consolidate gains of the past two years, trading in wide range and finishing the year near where it begins
Bond yields likely to move higher, with the 10-year T-Note yield reaching 3.0%
1. when it comes to
investing, time can be
your best ally, or your
worst enemy.When
time is on your side, you have the luxury of
being able to ride out the volatile periods, and
subsequently share in the good times that
follow market corrections.These recoveries
are often initially intense in nature, and
contribute a big part of investment returns
over the long run.
However, if time is not on your side, it’s not
that easy.What happens if you are only two
years away from retirement and you haven’t
saved enough to reach your retirement goals?
Inevitably you are going to want to take more
risk in order to try and make up for
lost ground.
But what happens if there is a massive
market correction, like we had in 2008? This
is where time is your biggest enemy. After
the crash of 2008, it took the South African
equity market about two years to get back
to the levels that it was before the crash (see
graph).The equity market lost roughly 40%
of its value over a period of only nine months
(May 2008 to February 2009). So just
imagine the disastrous consequences if you
were a new investor in January 2008, that
didn’t know any better.
But this is where it gets interesting.We
did some research on the JSE ALSITop40
Total Return Index (TRI), going back all the
way to June 2002.What we found was quite
fascinating, and it illustrates how time can be
your biggest friend when it comes to investing.
Many potential investors perceive
investing in the stock market as being just
like gambling, but the numbers show that this
is very far from the truth.
Going back to June 2002, if an investor
entered the market at any point in time and
stayed invested for a period of three years
and longer, the worst (cumulative*) return
over any three-year period was 0.76%. Keep
in mind that this includes the crash of 2008.
The best cumulative return over any three-
year period was 207%.The picture looks even
better over a five-year period, with the worst
cumulative return being 33% and the best
return over any five-year period being 370%.
It is important to stress that these returns
were cumulative in nature, and
not annualised.
But, beware the volatility! We
also looked at the numbers over
a period of one month and one
year, and here it’s a different story.
Over one month, the lowest return
was -13% with the highest return
14%. Over a year the variance was
even bigger, with the lowest being
-38% and the highest 73%.
The variance in returns is
recorded in the table.What we are trying to
demonstrate is that over a period of three
years and longer, an investor would not have
lost money in nominal terms if they were
invested in the South African equity market
at any point between 2002 and 2016,
including the market correction in 2008.
The other important point is that investors
should remain invested during times of
market volatility. Investors who try to time the
market will get it wrong more often than they
will get it right. Quite often, the consequence
of this is that they end up buying high and
selling low.
As already mentioned, market recoveries
often happen very quickly after a correction,
and if an investor decides to get out when the
going gets tough, it becomes
very difficult to get back in at
the right time.
For example, an investor
that was invested for a 10-year
period, from January 2006 to
December 2015, would have
made a cumulative return of
270% on their investment, but
if they missed only the top five
months during the 120-month
period, the total return would
have been 220%.To put this in perspective,
a fifth of the total return came from only five
months. Also, three of the five top performing
months were in the first six months of the
recovery after the 2008 crash.
There is only one way to avoid time from
being your biggest enemy when investing,
and that is to ensure you have a goal, and
a plan that guides you on how to get there.
Minimising investment risk should not be
done by trying to time the market, but through
an appropriate asset allocation strategy,
reducing your exposure to volatile asset classes
depending on your time horizon.This is where
proper financial advice is invaluable. ■
editorial@finweek.co.za
22 finweek 14 July 2016 www.fin24.com/finweek
PORTFOLIO MANAGEMENT
Trying to time the market?
By Rupert Giessing
marketplace investment
The performance of the JSE’s ALSI Top40 Total Return Index indicates that you will have a hard time getting it right.
0
01/06/2002 01/06/2004 01/06/2006 01/06/2008 01/06/2010 01/06/2012 01/06/2014 01/03/2016
4 000
2 000
6 000
8 000
JSE’S ALSI TOP40 TOTAL RETURN INDEX (JUNE 2002 TO MARCH 2016)
ALSI TRI RETURNS VARIANCE OVER DIFFERENTTIME PERIODS
Permonth CumulativeTRI Cumulative Cumulative
ALSITop40TRI 12-month 36-monthTRI 60-monthTRI
Minimum return: -13.24% -37.59% 0.76% 33.42%
Maximum return: 14.07% 73% 207.41% 370.11%
Average return: 1% 20% 76% 129%
*Acumulativereturnistheaggregateamountthataninvestmenthasgainedorlostovertime,independentoftheperiodoftimeinvolved.
Investors
shouldremain
investedduring
timesofmarket
volatility.
RupertGiessing isadirectoratVistaWealth Management,a
representativeundersupervisionofAccredinet FinancialSolutions.