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Investing through adversity

Seven principles to guide investors in times of market declines

Published Sat, May 28, 2022 · 05:50 AM
    • Focus on smart investing – keep a long-term investment horizon and focus on relevant research, solid data, and proven strategies
    • Focus on smart investing – keep a long-term investment horizon and focus on relevant research, solid data, and proven strategies Pixabay

    Jeik Sohn

    ECONOMIES around the world are facing market volatility as prices surge and interest rates increase amidst daily uncertainties. Oil prices are at an all-time high and in Singapore, we see core inflation rising to 3.3 per cent in April 2022, the fastest year-on-year pace in more than 10 years. Constrained supply conditions and heightened geopolitical risks are set to persist in the near term. As we head into the second half of the year, what can investors do? 

    Stay invested for the long term

    Right now, clients are asking us if they should start repositioning their portfolios, change their asset allocation or look for a bottom in prices. Our advice, as always, is to focus on smart investing – keep a long-term investment horizon and focus on relevant research, solid data, and proven strategies. Emotional investing can be hazardous. Here are seven principles to make a sound decision during these uncertain times:

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