Stock markets are likely to stabilise in the coming weeks and investors should be seeking to build their wealth now with currently undervalued equities, affirms the CEO of a global game-changing financial advisory, asset management and fintech organisation.
The comments from Nigel Green, chief executive and founder of deVere Group, which has $12bn under advice, come after most major markets have experienced two consecutive weeks of turbulence.
He observes: “As Russia amassed 150,000 troops on Ukraine’s border, concerns of a war in Eastern Europe, together with soaring inflation and the high probability of several hikes in interest rates, stocks have taken a bit of a beating in recent weeks.
“However, reports of a potential summit in the coming weeks between U.S. President Joe Biden and Russia’s Vladimir Putin to deescalate tensions in Ukraine, combined with positive economic growth data coming from multiple major economies, is going to have a stabilising effect on markets.
“Therefore, investors should seek to top-up their portfolios with high-quality equities ahead of a potential rebound as optimism becomes the more dominant sentiment.
“In-the-know investors understand that they should not only be staying in the market, but that now would be the time to act to further bolster their positions.”
Nigel Green’s bullish comments come as U.S. futures moved higher on news of the Biden-Putin summit, European stock markets are trading up on Monday, the German economy is reported to be growing at its fastest rate in six months, and business activity in the UK and France has recorded its strongest since June.
“We’ve had a period of market jitters and nervousness – and we’re still in it. For now. Investors should be taking advantage of current lower values to enhance their portfolios for the longer-term growth of their wealth.
“When used effectively and efficiently, a bit of volatility can be an extremely powerful investment strategy.”
The deVere CEO concludes: “I’d suggest that right now investors should not only be sitting on the sidelines and remaining invested in the market.
“They should also now be bolstering their portfolios, using sound investment decisions based on fundamentals such as diversification, growth potential, sensible valuations and profitability.”