04/05/2022 – When politics or ideologies and no longer economic facts or rational economic thinking dominate the markets, things get difficult. A longer-term investment horizon and a clear assessment of one’s own risk capacity are then indispensable. Investors repeatedly make the mistake of buying or selling stocks pro-cyclically. Timing is quite difficult. Panic and greed are bad advisors. With regard to timing, however, it helps, even if it is often difficult, to stick to Warren Buffet’s saying: “Be fearful when others are greedy, be greedy when others are fearful”. A well-diversified portfolio is critical to weathering volatile times. In general, we clearly prefer real over nominal investments. We are still largely refraining from bonds. Gold and good hedge funds are part of a broader diversification. In selected portfolios, we add crypto assets for additional diversification. In doing so, we invest in actively managed strategies including one that benefits from the rapidly developing DeFi (Decentralized Finance) market. We are convinced that an allocation to cryptocurrencies represents a sensible diversification in portfolios with little correlation to conventional asset classes and positively influences the risk/return profile.
Read more in the Strategy Update from the first quarter 2022.
For further information, we are at your disposal in personal conversations.