How to benefit from market uncertainty

Starting on March 9, 2009 and still going strong, we’re in the middle of the longest bull run ever. Almost 11 years later, the S&P 500 has seen a 468% gain. It’s now the best performing bull market since WWII. But can it continue?

Starting on March 9, 2009 and still going strong, we’re in the middle of the longest bull run ever. Almost 11 years later, the S&P 500 has seen a 468% gain. It’s now the best performing bull market since WWII. But can it continue?

Jim Paulsen, the chief investment strategist at the Leuthold Group, has a fairly positive outlook. He referred to this cycle as a bearish bull market. He stated that the economy stopping itself from getting “so far over its skis that it has to have a bear market.”

There is some logic to his statement. At the moment, correlation is high which means the stock market is stable and that most stocks fall within the average benchmark of value. 

Volatility is also low compared to historical averages.

That said, billionaire investor Paul Tudor Jones described the US economy’s 5% budget deficit and its ultra-low rates as “the most unorthodox and potentially explosive combination that you can imagine.” 

Geopolitical tensions create an uneasy market

While we’re reaching all time highs in the stock market, there’s anxiety around taking long positions due to current geopolitical factors. 

The US-China trade war has been costly. US tech giants are feeling their growing regulatory risks. The Brexit debacle has gone on for three and a half years. There has been an economic slowdown in Europe, China, and India. Inflation is rising throughout the world so, unsurprisingly, there have been some fears of a global recession. 

Even though the world economy is experiencing historically low volatility, there is long-term uncertainty on the market. Considering the ongoing geopolitical tensions across the world, it’s possible that the market could tip into higher volatility. 

How you can benefit from an uncertain market

While most people’s portfolios are set up for market stability, it’s important to diversify, especially with market uncertainty looming on the horizon. 

We have an investment that’s set up to benefit investors in an uncertain market. Due to the historically low volatility, now is a unique time to get exposure to this kind of investment. 

How does it work?

When there’s volatility and dispersion in the stock market, investors usually see big winners and big losers in their shares. 

This investment does things differently. Instead, you get a carefully-picked basket of international shares that should benefit your portfolio during times of high dispersion and volatility. At the same time, this investment can be used as a hedge against the financial risks that come with geopolitical tensions and economic uncertainty. 

While most portfolios are set up for a predictable, stable market, we are living in unusual economic times. This investment has been popular with people looking to set themselves up with a unique opportunity to benefit from the uncertainty. 

To learn more about this Dispersion investment opportunity, click here to request the IM.  

 

Past performance is not a reliable indicator of future performance

Reach Markets are the advisors assisting with the management of this offer and may receive fees depending on whether an offer is taken up by investors.

This investment is exclusively available to Wholesale (708) investors. Read the definition here. 

This Week’s News

News

11 December 2024

Aussie Tech Company of the Year fighting a US$10 trillion cybersecurity threat

News

28 October 2024

Aussie Tech unlocking big data for a $1 trillion Industry

News

15 October 2024

How this Aussie Tech delivers 100x lower costs to a $230 billion market

General Advice Warning

Any advice provided by Reach Markets including on its website and by its representatives is general advice only and does not consider your objectives, financial situation or needs, and you should consider whether it is appropriate for you. This might mean that you need to seek personal advice from a representative authorised to provide personal advice. If you are thinking about acquiring a financial product, you should consider our Financial Services Guide (FSG)

including the Privacy Statement and any relevant Product Disclosure Statement or Prospectus (if one is available) to understand the features, risks and returns associated with the investment.

Please click here to read our full warning.