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How to optimise your entry into a fear driven market

March 25, 2020

How to optimise your entry into a fear driven market

What’s happening to our market now is unprecedented. Developed nations are experiencing enforced lock down with industries grinding to a halt. Investors are increasingly anxious and the general population is worried about the future.

What’s happening to our market now is unprecedented. Developed nations are experiencing enforced lock down with industries grinding to a halt. Investors are increasingly anxious and the general population is worried about the future.

There has never been more uncertainty & fear which we can see reflected in the stock market.

In less than five weeks the XJO has fallen about nine times faster than in the GFC which saw the same move but over 47 weeks.

However…  Beyond this crisis there might be a huge opportunity for investors. There will be down grades and other issues but at the same time, the market is already pricing that in.

The market might still fall further. It’s impossible to time the market and predict when it’s going to hit its low point. But when it moves up the rebound is likely going to be fast.

Over the last six months, we’ve been looking for investments that act as a hedge or allow you to benefit from market volatility.

Now we are introducing a new investment that is designed to benefit from a market recovery. 

This investment is designed specifically to enter into the market in a high fear environment, looking at a two year time horizon and expecting the market will be trading significantly higher than it will be at its low point over the next six months. 

If you think the next few months will bring a buying opportunity and that in two years we could be at new highs, this is an innovative way of getting exposure whilst limiting your downside risk. 

The investment is closing on Friday – for more information, request the investment overview and PDS by clicking here.

 

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.


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.

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