“Investment strategy” has nothing to do with the rational or irrational concerns of each investor

authored by
Christos Alonistiotis
Market Insights
2 minutes read

The following graph captures XSpot Wealth’s growth portfolio through the last 10 years.

I would like to point out that an investment strategy with specific rules and with the appropriate management, tries to achieve a specific result. For this to happen, an investor should act like as if he has no information for what is happening in the markets. For this to be understood, I will cite below what I have read from various managers, analysts, big and famous investors and big financial Media in the last 10 years. And so is the duration of the portfolio.

“Markets are disconnected from reality”

“Fed cannot continue boosting stocks, because a lot more trouble has been provoked due to that”

“Bonds will not rise forever, because of their zero returns”

And many more. But there is something that is stable through time: what will an investor do with his money?

With zero interest rates, more damage than good is done and here is the risk that cash carries. On the other hand, markets still offer great chances for positionings. Investments obviously contain risk, but now so does cash.

There is no alternative: money should be invested. In various portfolios, with different risk and different purposes.