May 26, 2022 (Investorideas.com Newswire) The current stock market downturn is now close to the bottom, predicts the CEO and founder of one of the world’s largest independent financial advisory organizations, and investors should position their portfolios for a rally.
The bullish prediction from deVere Group’s Nigel Green comes as global stock markets have been rattled for the past few months over fears of persistently high inflation, aggressive central bank interest rate hikes, strict Covid lockdowns in China, and international supply chain issues.
The three major equity indexes on Wall Street have experienced their worst stretch of losses in decades. Elsewhere, the pan-European Stoxx 600 is down almost 12% year-to-date and the MSCI Asia ex-Japan has shed 18.62% since the turn of the year.
Nigel Green observes: “The market downturn has been pretty brutal, and been triggered by a variety of different factors, but I’m confident that we’re close to the bottom.
“One good indicator that the bottom is near is that tracking services reveal that ‘insiders’ are on a buying spree. They’re taking advantage of reasonable valuations to top-up stakes in quality companies in order to create and grow wealth in the longer term.”
An insider is a director, senior officer, entity, or individual that owns more than 10% of a publicly-traded company’s voting shares.
“With a bounce on its way, investors should be positioning portfolios to take advantage of the rally,” notes the deVere CEO.
“However, there’s a caution too. It’s not just about piling into lower-priced, high-quality investments; it is also about buying judiciously and being aware of the shifting economic landscapes and trends.”
He continues: “Exposure to sectors including energy, infrastructure, commodities, pharma, and consumer staples with strong branding ability, makes sense.
“Portfolio diversification is key and plays an essential role in managing volatility.”
Avoiding the “eggs in one basket” scenario significantly reduces the risk of all asset classes in your portfolio declining at the same time. Investors will miss out on the longer-term advantages they could be accruing if they don’t maintain a properly diversified portfolio.
“Diversification should always remain on track with the investor’s risk appetite and offer a suitable balance across asset classes, geographical regions and sectors,” says Nigel Green.
He concludes: “The markets have been shaken in recent months, but now I’m calling it: the bottom is very close.
“With a well-devised plan, a diversified portfolio, and an advisor, investors will be well-positioned to benefit from the forthcoming rally.”
t: +44 207 1220 925
deVere Group is one of the world’s largest independent advisors of specialist global financial solutions to international, local mass affluent, and high-net-worth clients. It has a network of more than 70 offices across the world, over 80,000 clients and $12bn under advisement.
This news is published on the Investorideas.com Newswire – a global digital news source for investors and business leaders
Disclaimer/Disclosure: Investorideas.com is a digital publisher of third party sourced news, articles and equity research as well as creates original content, including video, interviews and articles. Original content created by investorideas is protected by copyright laws other than syndication rights. Our site does not make recommendations for purchases or sale of stocks, services or products. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. All investing involves risk and possible losses. This site is currently compensated for news publication and distribution, social media and marketing, content creation and more. Disclosure is posted for each compensated news release, content published /created if required but otherwise the news was not compensated for and was published for the sole interest of our readers and followers. Contact management and IR of each company directly regarding specific questions.
More disclaimer info: https://www.investorideas.com/About/Disclaimer.asp Learn more about publishing your news release and our other news services on the Investorideas.com newswire https://www.investorideas.com/News-Upload/ and tickertagstocknews.com