The Sky is Falling and All News is Bad News
Runs on the banking system as well as constant reports on inflation and its threat to the American economy are running rampant in the news. Markets as well as investors might be overreacting to the news, especially as the market and investment professionals attempt to reprice securities in light of the turmoil. What is even more interesting is that repricing securities in the wake of market turbulence will certainly lead to many miscalculations. Investing in this market will allow smart investors to always come out on top as opportunities are all over the place as a result of the market turbulence.
What should investors be doing now? Smart investors should be getting ready to put any extra cash to use that has been sitting on the sidelines waiting for the right opportunity. Keep praying for more bad news because it only creates more opportunities in the market as uninformed investors continue to take actions that lead to big investment opportunities for more informed investors. According to US Bank, “By early 2023, a record amount of investor assets, close to $5 trillion, is now held in money market funds. This exceeds a previous peak for dollars set aside in money market accounts, which occurred in March 2020, the early days of the COVID-19 pandemic.” Do not wait to long to take advantage of typical investor psychology in turbulent markets which ultimately is to wrongly buy high and sell low.
Investors, get out in front of the ignorance with your best investment strategy as the $5 trillion held in money market accounts will be entering the market at some point, which is typically after the initial investment opportunity has been discovered. Be the first in so that you can be the first out as a “rising tide will lift all boats.” Get in before this $5 trillion tide of sidelined money pushes the next favorable market to new heights. Make no mistake, a bull market is brewing underneath this all-news-is-bad-news market. At this point, any long-term investment strategy can benefit from the current market environment. However, not all investment strategies are created equally and the best strategies will generate the best returns in the next bull market.
If you are a retail or other investor looking for an outstanding investment approach then visit our website to find out more about why our strategy is well poised to take advantage of the next bull market. Get great downside protection as well as outstanding upside performance by subscribing to our portfolio management newsletter. For those investment institutions looking to provide high net worth clients with something different, please give us a call at your earliest opportunity. Great investment ideas are getting more and more difficult to come by and requires more thinking outside of the box. Investoristics can provide investors with significantly higher returns with much less risk vs any market index. Get ahead of the tide, get Investoristics.
