As Russia has been amassing 150,000 troops on Ukraine’s border, concerns of a war in Eastern Europe, together with soaring inflation and the high probability of several hikes in interest rates, stocks have taken a bit of beating in recent weeks.
However, reports of a potential summit in the coming weeks between U.S. President Joe Biden and Russia’s Vladimir Putin to deescalate tensions in Ukraine, combined with positive economic growth data coming from multiple major economies, is going to have a stabilizing effect on markets.
Therefore, investors should seek to top-up their portfolios with high-quality equities ahead of a rebound as an optimism becomes a more dominant sentiment.
In-the-know investors understand that they should not only be staying in the market, but that now would be the time to act to further bolster their positions.
U.S. futures moved higher on news of the Biden-Putin summit, European stock markets are trading up on Monday, the German economy is reported to be growing at its fastest rate in six months, and business activity in the UK and France has recorded its strongest since June.
We’ve had a period of market jitters and nervousness—and we’re still in it. For now.
Investors should be taking advantage of current lower values to enhance their portfolios for the longer-term growth of their wealth.
When used effectively and efficiently, a bit of volatility can be an extremely powerful investment strategy.
I’d suggest that right now investors should not only be sitting on the sidelines and remaining invested in the market—but they should also now be bolstering their portfolios, using sound investment decisions based on fundamentals such as diversification, growth-potential, sensible valuations and profitability.
London-born Nigel Green is founder and CEO of deVere Group. Following in his father’s footstep, he entered the financial services industry as a young adult. After working in the sector for 15 years in London, he subsequently spent several years operating within the international space, before launching deVere in 2002 with a single office in Hong Kong. Today, deVere is one of the world’s largest independent financial advisory organizations, doing business in 100 countries and with more than $12bn under advisement. It specializes global financial solutions to international, local mass affluent, and high-net-worth clients. In early 2017, it was announced that deVere would launch its own private bank. In addition, deVere also confirmed it has received its own investment banking license.
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