Insights and strategies to help investors hold their nerve

April 14, 2025
Insights and strategies to help investors hold their nerve.

Whipsawing markets have been testing investors’ patience and confidence. Are you holding your nerve?

Many strategists have advised a risk-off stance, and have told investors to refrain from buying the dip. Yet a strategy of dollar-cost averaging is the mainstay of those saving for a long-term goal such as retirement.

Investing a fixed sum at regular intervals automatically buys more shares when prices dip, and fewer shares when markets rise. Is this strategy off the mark, especially in a crisis? It may not always feel so, but financial history is on the side of risk-taking.

Among private clients, there is also a strong appetite for structured products with downside protection Franck Fayard, Head of Marex Financial Products, APAC.

Marex designs customisable structured products using derivatives. Capital-protected notes, called minimum redemption notes (MRNs), consist of a zero-coupon bond and an option. It is best, however, to invest in MRNs before volatility spikes, he added.

 

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