Thread by @ithoughtadviser

Here is this Week’s Market Wrap!

Time to Build a Multi-Asset Portfolio

A Thread! (1/n)

#multiasset #portfoliomanagement #marketwrap #thread

Most investors have been favouring equity for the last 2 years. Recency bias nudges investors to think that equity is the only asset class to bet on.

It is this bias that kept investors from buying gold. (2/n)

#investors #equity #stockmarket #gold

Investors thought that gold wouldn’t do well. The post-COVID rally in #cryptos spooked the prospects of gold & added to that conviction. But that conviction has proved to be short-lived, and gold did exceptionally well in 2022. (3/n)

#gold #investments #personalfinance

Today, that same negativity is seen in debt investing. Investors think that debt investing is uninteresting and debt returns are less exciting. (4/n)

#debt #investing #interestrates #inflation

Investors’ preference for equity is an extension of this dislike towards debt.

This dislike for one asset class is being turned into a preference for another asset class. (5/n)

#assetclass #equity #debt #realestate #gold

Traditional debt investors entering equity markets are now only chasing past returns. This may not be a bright idea. It is time for traditional debt investors who entered the equity market to gradually go back and build strong debt portfolios. (6/n)

#debtportfolio #investors

2023 will be a year of multi-asset investing. Only a reasonably well-balanced portfolio has the chance to beat inflation. Slow earnings growth poses a risk to equity valuations. Betting only on equity would not be the best thing for an investor to do. (7/n)

#inflation #investing

The best approach for an investor is to have a little bit of - equity, gold, debt, and global.

Maintaining a healthy balance of all asset classes will go a long way in helping investors journey safely towards sustainable wealth creation. (8/n)

#assetallocation #globalinvesting

To read our previous Market Wraps, click on the link: ithought.co.in/category/marke…

#marketwrap #stockmarket #personalfinance