Loss Growth in global markets has started in 2023 After the bear market that left 2022. But the positive trend that marked the first week of the year is unlikely to sustain over time, at least not through the first half of 2023, when further declines and corrections are still expected.
,Uncertainty in the markets and inflation will decide the trend“says Victor Martínez, member of the EFPA Spain Accreditation and Certification Committee.
“That doesn’t mean it’s a bad time to invest, because difficult times are also moments of opportunity, This is the time to keep liquid and take positions,” he added.
“right now You will get a fair valuation on the stock market and the effect of increasing interest rates, but with a Long term investment opportunity And the movements of 2023 look very, very small compared to the power of the stock market,” says Miguel Useda, investment director at Velzia Management, in an interview. Business Insider Spain,
According to Louis Martin, partner at Abence, the only thing i could do now Taking the market as low as 2022 is a deep crisis – a recession in which improving earnings push the bottom of the stock market even further – or a war crisis, in which more countries are involved and create more conflict.
good time to invest
is always one good time to invest (and for the first time going public).
Sure it wasn’t the answer to the question you expected, but it’s totally true. Even moments when the market is cheap or in which some sectors have higher profits than others. But this is not your goal.
,It’s always time to invest. you have to think long term, And you have to keep in mind that stocks are real assets that are affected by the real economy,” Useda says.
If you are about to start investing for the first time, your objective will surely be between an early retirement or a decent pension, buying a new car, saving money for your kids’ university or simply living a better life than you are now. .
for this you have to Invest for the long term no matter what time of the market, and do it with a strategy that suits your risk profile.
Before investing, you must 6 months savings As an emergency cushion, have some basic ideas about investing money and consult a financial advisor, depending on the amount of money you have (1,000 euros, 5,000 or 10,000) Find the best financial product Define the best strategy for you for the money you save,
A long term investment strategy against ‘timing’ the market
According to Unai Ansejo, Co-CEO and Founder of Indexa Capital, in looking for the best time to start investing, you lose between one and 1.5% of profitability.
“Oh 3 ways to invest: the first one is very wrong, which is looking for the best moment, Then, you can reverse it all at once or reverse it in stages.But the most important thing is that it be long-term,” says the expert.
“You have to invest with that prudence and eye on the long term and not be afraid of the fall, which is exactly what you need to take advantage of to increase positions, not exit. That’s almost the key,” Useda agrees.
If you have the best product in the world, but you sell it when it goes down and you buy it when it goes up, you’ll never make money, recalls Miguel Camina, CEO of MiCapital.
“When you invest for the long term, The Small Moves of 2023 Will Look Very, Very Small Compared to the Stock’s Power, To invest, you have to think long term and forget a bit about the noisy and aggressive short-term movements,” Useda continues.
staggered investment best buy of all time
The strategy that seems most logical is the second one Anejo commented on: investing everything at once over the long term. The longer you stay invested, the higher returns you can expect,
But in today’s market, a step-investment strategy of smaller investments looks more attractive. This way, you are buying high and low and also ensuring good returns for your investment portfolio.
,What happens if a subscriber invests all his money in May And then you see how the stock market goes down in June, July, August and September? He just has to bear it, as it happened in 2022. but if he invests Month by month I’d be buying better and better“, says Camina.
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“If you do it in one, you have the money being invested for a short period of time, but Investing periodically protects you from market downturns“, says Anejo.
While there is less consensus than ever about what will happen to the markets in 2023, Useda believes there is still a rough road ahead and follows the same recommendation as his colleagues.
“The thing to be advised in these cases is Properly distribute the flow of money over different periods to avoid time from the market And look at the long term (10 to 20 years)”.