Global Opportunities Beyond the Radar

The Coming Correction: Disaster or Opportunity?





Is just thinking about it enough to make your stomach lurch and give you sweaty palms?

Well, you’re certainly not alone. Many investors feel exactly the same way you do. Anxiety over ‘what if’.


Source: The McDowell News


Yet here’s an undeniable fact: the next shock event is almost certainly coming.

Yes, sir. Guaranteed. Absolutely.

Here’s what it looks like:

While it’s impossible to predict with certainty when the next correction or crash will happen, we do have a wealth of historical data.

Here’s what the past tells us:



Timing the market?


So, given the facts, some of you might be wondering:

Aha. These are very good questions.

Peter Lynch, the legendary fund manager of Fidelity Magellan, has a witty reply for you:

‘Far more money has been lost by investors preparing for corrections than has been lost in corrections themselves.’


Source: Fidelity


Here’s the issue. We human beings are terrible at timing the market. And when we do try, we almost always lose money.

So, you have to ask yourself honestly: is your fear of a correction a good enough reason to stay out of the market? Especially when the upside could be more positive than you believe?


Source: Fidelity



Invest for long-term value


At the time of writing, the annual rate of inflation in New Zealand sits at 6.9%. It’s anyone’s guess what it will look like by the end of the year.

None of us have a crystal ball. But this much is clear: life is about managing risk. And there is a clear and present danger right now of seeing the value of your cash fade due to inflation.

Your opportunity cost is what you could do with your funds instead.

Could you be earning dividend income? Along with some capital growth? Without having to buy into New Zealand’s expensive property bubble?

Given this inflationary environment, simply waiting and doing nothing may be the biggest risk of all.

Protecting wealth. Growing wealth. It’s never been more urgent to do so.

Do you feel the same way? Would you like to talk to us?

We are now offering free consults for Eligible and Wholesale Investors.

Click here to register your interest today.

Rest assured, we’re always here for you.

Rain or shine, boom or bust, we can help you put together the ideal plan for the rest of your financial journey.



John Ling

Analyst, Wealth Morning

(This article is general in nature and should not be construed as any financial or investment advice. To obtain guidance for your specific situation, please seek independent financial advice.)

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