In 2018, world stock markets went up. Then they went down, then up, then down and down again.
By the end of the year, the three major indexes tracking world stock markets were all flashing red. This means if an investor had decided to just purchase products that followed these indexes, they would have lost money.
The MSCI World Index, which – tracking the stocks in 23 of the most developed economies – is the financial sector’s “go-to” for taking the economic temperature, slumped 8.71%. Investing £100 in line with that index would have seen you finish the year with £91.30.
Not great if you are building for a financially secure future.
It is debatable as to whether these indexes should be used as a path for investors as the theory behind them is to demonstrate the overall movement of share prices. They track each company’s stock and do not either highlight more of the winners or dump those that are really struggling.
But there is another way to invest without blindly following these general ups and downs.
Our Popular Investors don’t just track the market. They make investment decisions based on financial and economic information and use their experience to gauge how external factors might impact a company’s stock price.
They get to know companies and if they like it or think it stands to do well after a government or world event, they can buy more of it.
If the don’t like it, they can avoid it.
PIs interpret the noise that is going on around us and use their knowledge of market sentiment to sell or buy stocks to make the most of the opportunity.
By providing commentary about what they are doing and why they gather followers who can make the same trades. Over the past three years, some of our most popular PIs have made positive returns on their portfolios, even when market indexes were in the red.
Followers watching and copying a PI’s actions can piggyback off their trades, but also learn to read and interpret the market through the commentary they provide.
There are no guarantees for anything in this life, but following the average usually only leads you to mediocrity – whatever that looks like. Our PIs want something better — and you can follow them as they look for it, too.
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