How to generate returns in a falling market

With equity markets reaching all time highs, most of our prospective clients are reluctant to start investing their capital due to the fear of a sharp market correction. Even when we speak to fund managers from the likes of Rathbones in london they are also extremely wary of current valuations and are having to tread very carefully when placing their long positions. Seeking value in large bluechip companies such as VISA and AMAZON.

Market Corrections and Cycles

The reason for this fear is due to the historic data we have at our disposal. Typically if we look back over the past 90 years we see an obvious trend. Markets tend to correct every 7-10 years and since our last correction was the financial crisis in 2008 you can understand why there is a great deal of uncertainty. The graph below shows the performance of the S&P500 over the past 90 years and highlighted in grey are the corrections.

The performance of the S&P500 over the past 90 years

So How Do You Generate Returns In A Falling Market?

While utilising ETF’s and Mutual Funds can be extremely profitable when markets are doing well they do not protect your capital against any downside. Because of this SuisseRock have found solutions that will generate positive returns even in a falling market. Our clients most popular choice is an investment that generates 6.1% per annum even in turbulent times. In addition it provides a great deal of protection on your initial investment which is key when investing in a volatile and arguably an over valued market.

How To Find Out More?

If you are unsatisfied with the returns currently offered by your bank and concerned about future market risk then please do contact us. We will offer you a complimentary introduction meeting where we can discuss your personal objectives in detail and advise you on suitable investments.