11 Dec 2022
2022 was a rough year for many investors; after the US stock market officially dipped into a bear market in June, a year-end recovery did not come to fruition as many had hoped. Instead, the stock market is battling volatility and it feels like a constant pattern of “one step forward, two steps back.” While times like these can cause the investment landscape to feel hopeless, investors need to adjust how they think about market dips.
When portfolios take a tumble, as many have done this year, it can be hard for investors to stay calm. Some choose to pull out of their investments and hope that they can save themselves from greater losses, but others trade their panic for confidence and recognize the opportunity in front of them.
Warren Buffet, a world-renowned investor who is known for keeping his wits about him when many in the investment space start to panic, was quoted saying, “Opportunities come infrequently. When it rains gold, put out the bucket, not the thimble.” He has also said, “Be fearful when others are greedy and greedy when others are fearful.” Both of these quotes highlight what every investor needs to keep in mind during turbulent times: these are discounted buying opportunities, not time to panic.
History has taught us again and again that markets will recover, and well-balanced investment portfolios will recoup their losses and flourish in the years ahead. These crashes can exist within a specific country, or, similar to what we are experiencing now, they can be felt globally. Fortunately, every major economic downturn has been followed by recovery, and this time is no different.
Diversification is the best method for a thriving investment portfolio, during booming economic times and times of uncertainty. Right now, the world is seeing major levels of inflation, supply chain challenges, and massive dips in technology, retail, and other sectors. However, considering alternative investment options, ensuring proper high levels of liquidity, and building a robust investment strategy can make a major difference in the success of your overall portfolio.
Hewwest provides support through industry diversification, insightful data analytics, and a focus on long-term results. Though markets all over the world will continue to fluctuate over the next year, we aim for results in two, five, and even ten years from now. Our wealth management experts and resources surrounding stocks and trading can help turn the upcoming year into a financially beneficial experience, and that’s what we aim to do for all of our clients.
Every client has different investment goals, and because of that, we support each client with a different financial strategy. There is no “one-size-fits-all” when it comes to finances; finances are personal, and at Hewwest, we understand that better than anyone.
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