Wow there is a lot of fear-mongering happening in the media at the moment regarding shares and stock prices. There are many so-called experts capitalising on people’s fear right now to sell their latest newsletter or subscription service imploring you to buy their subscription to avoid complete annihilation! Or ‘Buy Now’ to know which penny stocks are going up 1000% over the next 30seconds!
Covering the news wires last week included “What will happen with the Fed and US interest rates (this week)? Will OPEC cut oil production? What is happening in China?”
Over the course of the last 100 years what history has taught us is the times of bearish sentiment have predominantly been the BEST BUYING PERIODS.
If we were to role model the most successful investor to capitalise on long term market trends, we would find the he prefers to “BUY WHEN THERE IS BLOOD ON THE STREETS”, and in fact he is buying shares during this pull back in the market. I am of course talking about Warren Buffett who is confident that in the medium to long term the stock market “will be considerably higher”.
We all know that if you put your money under your bed that in 10-15yrs time it will be devalued due to inflation. In other words what you can buy for a dollar today will be less over time. Unfortunately with cash rates at 2% and the potential to go lower, holding your money in a bank account is not the formula for wealth creation.
The ASX over the last 4-5 months has dropped roughly 16% from the yearly highs, and individual stocks have fallen even further. There are opportunities in this market to acquire quality blue chip stocks that are paying above 9% fully franked dividends.
“But what if the market falls further?” I hear you ask? Well this is where having your portfolio assets protected from market falls can give you the ‘Confidence’ and ‘SLEEP AT NIGHT’ factor to invest when others are rushing for the exits and literally giving their shares away.
If you would like to know more about our premium Protected Equity Portfolio Service then feel free to connect with either our Melbourne or Sydney Offices.