Portfolio management: How the right positionings protect savings and generate capital

authored by
Christos Alonistiotis
Empower your Future
2 minutes read

What followed the 2020 lows has significantly changed the way an investor / saver makes use of his funds. Now fluctuations have increased, while the search for good opportunities is much more difficult. In addition, the positions in individual equity and bond securities of the United States and China, which was strongly promoted by the financial Media, led to a deadlock and significant losses, as bond yields skyrocketed and shocked other markets.

The search for investment opportunities hides big pitfalls. The usual response through extensive articles of major financial Media, leads to mishandling.

To make it even clearer what is currently happening in some markets, China is experiencing a March 2020- like situation, with its markets having fallen even close to -30%. But what about a well-diversified portfolio that gives the investor access to China, America, government bonds and other markets? How well does it perform in this extremely difficult situation?

As the well-known Chinese proverb puts it right: A picture is a thousand words. For the second time in 12 months, an investor incurs large losses. At the same time, portfolios aimed at capital appreciation have managed for the second time to safeguard the profits generated in the worst situation since 1989 and are currently just 5% away from their highs on average.

Profits of 42% are needed to cover losses of 27%, and this is a "rough" estimate as we must include the time it takes to cover, as well as which is the average annual return.

Today is the time to create an investment portfolio that will add value to an investor's capital. And there is no better way to do this than with XSpot Wealth investment portfolios. Because capital must first be protected in order to generate profits.