From the COVID-19 period to the present, is there another time when we can experience the investment market comprehensively as much as the last two years? The world, which was worried about "negative interest rates" just two years ago, is now suffering its worst inflation in 40 years. As a result, the investment market is also going back and forth between hot and cold baths.
It was a pleasant start. When the COVID-19 pandemic began in March 2020, governments responded quickly to prevent the real economy from shrinking.
The Korean government also carried out an all-time quantitative easing of about 59 trillion won, which led to a boom in the investment market, where all stocks rose. As the market overflowed with the success story of an acquaintance's investment and life reversal story, people who were not interested in investing eventually jumped into the upward trend, feeling the Fear of Missing Out (FOMO).
As a result, the size of individual investors' investment grew to 1,229.79 trillion won, up 2.2 times from before COVID-19.
But the rally wasn't long. Much of the liquidity that had been released on the market inevitably caused all-time inflation, and now, starting with the U.S. Fed's giant step, each country's central banks are adamant about evolving inflation and are rapidly pushing for quantitative tightening. As a result, the KOSPI, which had been rising to the right by surpassing 3,300 points in June last year, fell to 2,300 points in a year, evaporating 470 trillion won in market capitalization in a year.
The dizzying experience of rising and falling markets rapidly like roller coasters makes us rethink the fear of volatile investment markets. Of course, it is clear that volatility is a good opportunity for investors. This is because changes in asset prices due to volatility can bring great returns. Because of this irresistible attraction, so many investors have entered the investment market. But what's clear is that not everyone can take this opportunity.
In particular, it is more clear when looking at the actual performance of individual investors. According to the Korea Capital Market Research Institute's analysis of the stock market from March to October 2020, the cumulative return on stock investment (including transaction costs) was high at 14.4%, but only 54% of all individual investors enjoyed this return. The remaining 46% recorded investment losses even in the upward trend.
Not to mention the performance in the bear market at a time when half of individual investors lose money even in the bear market.
In May, a securities firm analyzed individual investors' accounts and found that 90% of investment stocks were negative. Of the top 50 stocks held (based on the number of accounts), only five made positive returns, and the average return of 50 stocks in this stock was -18.1%.
The implications of the above data are clear. Whether it is an upward or downward trend, it is very difficult for individual investors to achieve a certain level of performance in a highly volatile investment market.
Those of us who have experienced the market comprehensively now need to think calmly. "Do I have the skills and insights to always win and make a profit in a volatile market?" If not, what we need to do now is wake up quickly in our dream of becoming a big hit and use realistic investment methods.
Investment laws vary depending on individual tendencies or situations they face, but considering the current market situation, the common principle that can be used is defense, that is, "protective investment." To this end, efforts are needed to pursue positive real returns and disperse assets without losing principal.
Considering that now is entering a recession, the most important thing to pay attention to is not to lose assets. It is necessary to reduce excessive bets and minimize losses while steadily making profits with the aim of large profits. This is because one big loss can be a big blow that is difficult to recover in a fall market where asset prices are relatively unlikely to rise.
Therefore, the investment portfolio is also worth considering rebalancing by reducing the size of highly volatile risky assets and increasing the proportion of safe assets such as deposits and bonds.
It is also very important to consider the real rate of return considering the inflation period. This is because if the expected nominal rate of return is lower than the inflation rate, the real rate of return becomes negative.
Therefore, considering that the domestic consumer price growth rate is 6%, it is desirable to set the expected return rate at least 7% per year to expect a gentle net increase in assets. Of course, it is not easy to find a medium-return investment destination of 7% per year in a situation where there are many investment destinations with very polarized personalities such as deposits and MLB중계 stocks, but these days, alternative products that advocate medium-return risks are gradually increasing.
Representatively, a new asset type that is attracting market attention is ontu finance. On2 Finance, which claims to be a risky investment among medium-returns at 6-12% per year, is a platform finance that connects various customers who had no choice but to use high-interest loans in existing finance despite their ability and willingness to repay and investors who want higher interest returns than bank deposits.
On-to-Financial deals with various product groups such as retail finance and corporate finance, especially mortgage investments that have clear collateral such as apartments or short-term loan bonds for 7 to 10 days as collateral for electronic bills are highly preferred by investors due to stable investment performance.
Finally, let's not miss the diversified 무료스포츠중계 investment either. Distributed investment is an investment principle that should be used more actively in the bear market.
The importance of distributed investment tends to be very low as the cases of successful returns through intensive investment have been talked about for some time, but this is because people only recognized success cases. Concentrated investment is great if you do well, but if you don't, you lose your assets significantly.
On the contrary, distributed investment is strong in defense. Investing in several stocks in low-correlation asset groups and each asset group could help reduce losses and protect assets.
It's a difficult time for everyone. The market is full of concerns and worries rather than hopes. However, as the past already proves, there will be another opportunity after the crisis.
Therefore, for the pleasant time to face again, let's put anxiety on one side and keep what is given to us now and build a better perspective and a strong foundation. I believe that the time and effort we have accumulated one by one will surely return to great results. I cheer for your investment journey that will continue silently until then.
