While a few months ago, stocks and cryptocurrencies were on the rise, the geopolitical context has encouraged investors to secure their positions under penalty of suffering a significant loss of value. Over the past decade or so, market cycles have tended to shorten, making their projection increasingly complex and anxious. This is due in part to the globalization of stock market investment and the immediate access to information on the subject. These two phenomena lead to sheep-like investment and divestment behaviors.
But then, how to position yourself when the visibility of markets is clouded?
Here are the three pillars you should never forget about in asset management!
 

1. Time, our best ally

First, statistical point, we do not repeat it enough, but time is our best ally. The statistics prove that even if past performance never predicts future performance, time allows the risk to decrease. If you invest in the stock market with a one-year investment horizon, it may be like betting on a roulette color. Conversely, positioning on a very long-term basis allows us to stretch the probability of losses towards 0%. Longer the investment time is, lower is the risk of loss!

2. Scheduled payments to surf the markets

Second, other well-known tips for seasoned investors, invest with scheduled payouts. Whether it is the Dollar Cost Averaging (DCA) which consists of investing the same amount each period or the “Dollar Value Averaging (DVA), a variant of this first method using market variations to position itself at each reinvestment. These methods drastically reduce risk by investing both up and down to smooth out the overall value of the entry point.

3. Diversification, essential pillar of asset management

Lately, diversification is undoubtedly the most important pillar of good asset management. It must be present in all its forms: geographical, sectoral, at the level of envelopes, insurers, asset classes, strategies... The more diversified you are, the less dependent you will be on one factor. And what is the big advantage in all this? Diversification does not necessarily mean diminishing the earning potential.

And this is the strength of these 3 pillars, diluting risk without necessarily impacting performance. At Finankap Group, we are committed to putting our expertise into the service of your performance. Through active management of your contracts, our goal is to establish asset allocations offering you the best return/risk ratio according to each investor profile.

In this climate of uncertainty, it is essential to remain vigilant to seize opportunities, whether by securing your assets or by revitalizing allocations with cyclical opportunities. Thanks to a constant monitoring of political and economic developments, we aim to offer unique management adapted to each client.

Finankap Group, always by your side to give life to your desires.