Home ยป Tech fortunes will be made as panic-selling triggers bear market

Tech fortunes will be made as panic-selling triggers bear market

by LLT Editor
15th Jun 22 10:50 am

Fortunes will be made in this current bear market as in-the-know investors use the 20% drop as a major buying opportunity, affirms the CEO and founder of one of the worldโ€™s largest independent financial advisory, asset management and fintech organisations.

The observation by Nigel Green of deVere Group, a game-changing financial services giant, comes as the S&P 500, Wall Streetโ€™s main stock index, shed 3.9% on Monday. The index fell another 0.5% on Tuesday and is now 22% below its record set early this year and now officially in a bear market.ย ย 

Other major stock markets around the world have also been experiencing sell-offs in recent days and weeks too.

Bitcoin, the worldโ€™s largest cryptocurrency, has also lost nearly 30% of its value in just seven days, weighing on the broader digital currencies market.

A bear market is the term used to describe the plummeting of financial markets by 20% or more from their most recent all-time high.

The deVere chief executive says: โ€œFears about possible recessions have tanked stock markets around the world amid reports that the U.S. Federal Reserve โ€“ the worldโ€™s most influential central bank – could raise interest rates by as much as 0.75% on Wednesday, which would be its biggest single hike for nearly 30 years.

โ€œThereโ€™s huge uncertainty right now โ€“ which markets loathe โ€“ and this, of course, is creating mass anxiety amongst investors.

โ€œAnd away from markets, people are rightly worried about how this will all translate as companies seek to cut costs, jobs and investment as they experience a painful cost of living crisis not seen for decades.

โ€œThis can be highly stressful, and a financial adviser can help people navigate choppy waters.โ€

He continues: โ€œIn this volatile environment, I would urge investors to stay invested in the market – do not sell unless you urgently need the money – and to ensure your portfolios are properly diversified, which is your best way to mitigate risks and reap rewards.

โ€œYour future self will thank you. The average bear market lasts less than a year and they typically rebound stronger than before.โ€

Nigel Green, a serial investor and entrepreneur, says that long-term investors will be using the downturn as an opportunity.

โ€œHistory and recent data teach us that bear markets are usually major opportunities to build wealth for investors who top-up their portfolios with quality stocks at lower prices.

โ€œThe panic-selling of the last few days has created some important long-term opportunities with high upside potential and low risk possibilities for those who buy judiciously.

โ€œThereโ€™s no doubt that some fortunes will be made in this bear market, like in others before.โ€

The last bear market was in 2020, but it was unusually short as it only lasted about a month. The current one is likely to be longer due to the slew of contributing factors that are fuelling it.

The deVere CEO concludes: โ€œDespite the panic, bear markets have historically been optimal times to build wealth for savvy investors.ย ย 

โ€œBut this is not the time to dabble in DIY investing or financial planning. Advice is your best friend right now.”ย 

Leave a Comment

You may also like

CLOSE AD