When Will the Market Bottom?
Question
Answer
Hi Peter
That is a question that unfortunately, has no answer. We don't know when the bottom will be, nor do we know when the top will be.
What we do know is that markets experience cycles over months and years and that over the long-term (7+ years) equity markets will rise and outperform all other asset classes on a total returns basis.
In general terms, we believe it is better to invest in a diversified portfolio, with a mixture of growth and defensive assets based on your risk profile/investment time frame and allow the diversification to carry you through volatility rather than trying to time macroeconomic events. More investors grow wealth through developing good savings and investing habits rather than knowing exactly when to jump in and out of the market.