With the recent 10th anniversary of the financial crisis on many investors’ minds, we think about how the world has changed since then. Before the financial crisis, New York’s renowned Waldorf-Astoria was home to some of the most prestigious investment conferences and the home away from home for many U.S. presidents. Today, investment conferences are held elsewhere and presidents no longer stay there. But the classic Waldorf salad, born at the Waldorf-Astoria, remains a quintessential delight enjoyed the world over – and it probably has much to teach in the old saying: The difference between a great salad and garbage is timing. And so it goes when it comes to investing.
Late = wrong, early = wrong
Trying to time the market is never a good idea. While we all fear staying in an investment until it’s rotten, being too early can also be sickening for a portfolio. Remember all the investors who successfully predicted the 2011 Eurozone crisis? If they were more than 10 months too early, they would still have underperformed a passive “buy and hold” investor in global equities.
Today, two prominent concerns – a North Korea conflict and Fed rate hikes – are causing investors to grow increasingly anxious. Those who flee risk assets can miss out on returns if risk events never materialize or if they occur later than expected. How can you capitalize on opportunities if you’re in and out of the markets – and possibly missing some of the best-performing days?
CIO Americas, Wealth Management (CIO-A WM) offers investment strategies and specific asset allocation guidance to help investors feel confident about exposure to the markets in its new UBS House View publication entitled: “Waldorf salad” We believe that through a disciplined approach to risk management, investors can benefit from long-term upside, while also navigating some of the potential shocks along the way.
And, in continuing to offer investors forward looking global guidance, this edition of UBS House View focuses on renewables ,. With renewable energy sources projected to play an increasingly important role in the global energy mix, this new theme offers a compelling long-term investment opportunity.
For more on CIO-A, WM's investment outlook and portfolio recommendations, read Waldorf salad .
Is your portfolio prepared for a changing, complex global investment environment? Together we can find an answer. Connect with your UBS Financial Advisor or find one.