Let’s make things simple – Let’s take another route
Investing is not an easy process, nor is it simple. Therefore, achieving your investment goal is not an easy process too. We know that. And we know which is the stake: your financial future.
At XSpot Wealth we have created a set of dynamic tools to design strategies, create investment portfolios and manage your investment funds. Our managers are constantly looking for the best opportunities for you.
Our innovation is that we create high level investment portfolios by choosing to combine different investment strategies, different markets, different asset classes, different geographical dispersion. We select the best managers in all of the above and decide on the most appropriate composition. In this way we achieve differentiation. Not only in different markets, but also different investment strategies.
The continuous monitoring of investment portfolios ensures that your funds will always be placed in the right market, at the right time. Our main and non-negotiable goal is to achieve the returns we designed together, but with the right exposure to risk, which will make you feel safe.
Building a successful investment experience can be more easily achieved through some critical steps, which can help you effectively aim to achieve long-term wealth from your investments.
1. Dedicate yourself to your work
Your job is to enable you to have an income available for investment. However, work alone is not enough to have a better financial future. You need to keep working hard so that your savings can grow in the long run, with the help of an expert.
2. Accept the past - Create your future
Wrong investment decisions of the past must be left in the past. Trust a professional who can suggest the best solution for you and who will show you the whole path of the investment in advance, so that you can check at any time if your investment is on the right track.
3. Accept the markets - See in the long run
Markets have a long history. Looking at the S&P 500 over the last 100 years, it is consistently higher. It may go through periods of uncertainty but ultimately time is your best ally. Look in the long run and you will always have the best of returns. In the long run, markets will "work" for you. Historically, any form of investment has resulted in a large increase in investor wealth.
4. Do not try to outperform the market
Above, it appears that the average annual return on US large-cap stocks over the past 100 years is 10.9%. This is achieved in the long run, with the good and the bad years for the markets. Attempting to make bigger profits by investing in individual stocks ends in failure. What you should expect from your manager is not to achieve better returns, but returns close to the index, taking in the meanwhile less risk.
Did you know that:
Asset managers who systematically manage to have better returns from the markets, do not do so because of a ‘hot pick’ but because of the greater exposure to specific stocks of the index that follow each time.
5. Benefit from all sources of return
Studies show that both stocks and bonds can offer stable returns in the long run and in many occasions the portfolio diversification with the combination of these two assets can prove to be extremely profitable.
6. Reduce risk in a smart way. Be diverse
The best passive risk management strategy is diversification. For example, you can invest in an ETF with the S&P 500 and have exposure in 1 country and 500 shares. But you can also invest in an ETF that invests in stocks worldwide and have exposure in 71 countries and over 9000 stocks.
7. Avoid striving for the perfect investment time (market timing)
The best time to invest for a long-term investor is NOW. Markets can stay irrational longer than you can stay solvent, Keynes said. In investments, what matters is the period of time that the funds are in an investment scheme and not the perfect time to enter that investment. If an investor loses 10 of the best days of an index in 20 years, then he will end up with even 50% lower return than the index, even if he manages to avoid the worst days of the index.
8. Do not be emotional with your investments
If you are investing funds that are not intended for your everyday life and if you have long time horizon, market volatility should leave you indifferent. The model portfolios of XSpot Wealth, are the most suitable investment tool to avoid emotional fluctuations.
9. Do not pay attention to the Media
The media "sell" news. The more aggressive the headline, the more will be read. Most of the time, the news about your investments is either outdated or has little to do with the markets. In addition, the markets have their own way of "absorbing" even the worse kind of news. Can you realize how much bad stock market news the markets have overpass in the last 100 years?
10. Provide control of your investments to a trusted manager
An experienced and professional asset manager will be able to help you achieve your goals by creating an investment portfolio that will meet the goals you have for the future.
This document does not constitute and shall not be construed as a prospectus, advertisement, public offering, or placement of, nor a recommendation to buy, sell, hold or solicit, any investment, security, other financial instrument or other product or service. This document is for general information only and is not intended as investment advice or any other specific recommendation as to any particular course of action or inaction.