If 2020 has taught us anything, it is that the future is far from certain. The longest growth run of the global financial markets in history can quickly turn into one of the largest falls ever recorded. In March of this year, that is exactly what happened. In a matter of weeks, the S&P 500 lost more than a third of its value in roughly a month. And that’s not even the most interesting part. As of this writing, the index is on track to surpass its highest ever value before the end of this year.
Most of us would not have wanted to hold positions in the fund on March 24th had we bought them a few weeks earlier. None of us would have sold them had we known about the historic recovery that followed. But alas, that is exactly where most individual investors found themselves. With the rise of popular commission-free platforms like RobinHood, thousands of out of work individuals tried their luck with the stock markets this year. Only to realise that it is often best to leave the most difficult jobs to the professionals.
In a recently published Markets Insider news article by Saloni Sardana, “Goldman Sachs’ most recent S&P 500 prediction is in line with those of other renowned market strategists” and “The market bull Ed Yardeni said this week that unprecedented stimulus and stocks’ bullish trend would drive stocks up another 5% by the end of this year and another 14% by the end of 2021.” Read more of this article by clicking here
Byron Wien, Vice Chairman of Blackstone Group Inc.’s private wealth solutions business said in an interview on Bloomberg Television and Radio “When the recession is over, I can see the S&P 500 being higher than it is today, but basically I think it’s fully priced at this point,”
Wealth managers are certified and experienced professionals rarely miss out on the great economic opportunities that the financial markets offer. A well-designed wealth management strategy can ensure that financial investments continue to grow even in the most uncertain times. While it may be tempting to try one’s luck with the next Tesla, conventional wisdom dictates using the right person for the job.
It is perhaps even more important that you continue to provide for the ones you love long after you physically cannot. Most modern wealth management firms offer excellent estate planning options that extend the economic opportunities for your portfolio by the decades.
At Capital Associates, we deliver the right investment package for you. We offer pensions advice, investment bonds and Existing Fee Analysis. We always work with the client in mind, by delivering bespoke financial solutions. Book your free consultation by clicking here.