In a recent appearance on CNN En Espanol’s Globo Economia, Managing Partner of WE Family Offices Santiago Ulloa discussed the recent weeks of volatility in the global stock markets. Santiago described recent market conditions which may have led to the recent market dips, including an unprecedented time of global financial growth. All the major markets including the U.S., Asia and Europe have seen simultaneous periods of growth, coupled with favorable macro-economic conditions, leading many experts to believe we are in a period of “too good to be true.” In light of these conditions, many experts feel a period of pull-back is imminent. While the point of inflection is still unknown, most experts believe a market correction may be near.
In addition to market conditions, Santiago discusses risk tolerance for investors, and when to know if an investment is appropriate. Some of the considerations an investor should consider is how much capital is needed for day-to-day expenses, the expected time horizon, and the financial objectives. Armed with information, what can investors do to ride out market volatility? Santiago says the first and most important is to remain cool-headed. Making emotional decisions can have harmful, long-lasting consequences on an investment portfolio.
Secondly, Santiago Ulloa discusses that in an inflated market, it may be difficult for investors to find enhanced returns. He discusses where investors may find returns, including technology, big data, robotics, private investments and emerging markets.
As to when, or if, a market correction is to come, most experts agree that while we are overdue, no one can predict exactly when it will come. To watch the full program, please follow this link.