The Equity market, also known as the stock market, is widely considered to be one of the best long-term asset class to invest in. However rather than investing in individual stocks, it may be prudent to consider Stock Indices.
There are many advantages to investing in Stock Indices. Generally speaking, Stock Indices are seen as a safer investment than attempting to pick individual stocks from certain companies. This is because an Index will help to smooth the inevitable peaks and troughs that these firms are likely to experience. As such, you don’t have to spend your time trying to focus on who will win and who will lose.
More importantly, in the current market climate where some of the major Equity Indices are trading near their record highs and are prone to sharp reversals as witnessed at the back end of last year, our strategies are designed with an intention to take advantage of both falling as well as the rising markets.
Many traditional funds are highly correlated to the performance of the worldwide Equity markets and although they may not track them completely, a large portion of their portfolio does. If Equities retrace- some funds will under perform. We believe our strategies may excel in this market climate should it present us with the opportunity.