After Russia invaded Ukraine on February 24, global markets suffered losses on fears that the conflict will lead to higher commodity prices and slower growth. |
As of March 31, many of our variable life insurance funds had recovered strongly from their lowest points following this event. In fact, two funds had double-digit growth in just over a month, benefiting investors who took advantage of the sell-off. |
Rebound from the Lowest Price After Russia Invasion |
Is the worst over? Are the markets now on the path to sustained recovery? Will the ongoing peace negotiations between Russia and Ukraine mean that global markets will continue to go up? No one knows for sure. Peace negotiations can take time, and even if a ceasefire happens – the path to normalization of commodity prices and growth may also take time. |
Source: Bloomberg. Returns are from lowest price after Russia Invasion (Feb 24) to March 31, 2022. Past Performance is not an indication of future results. |
How to take advantage of market volatility |
The current market situation is not new to us. We’ve been through other crises before and there are lessons that investors can learn and apply at present times. |
Investing and staying invested makes sense. |
History tells us that markets generally drop sharply during a crisis, but they normally bounce back, and usually the recovery is strong and sustained. |
Long term investing works. |
Long term investing enables investors to ride out market volatility, giving them more chances of earning higher income over time. |
Investing regularly answers the challenge of market timing. |
Even amid heightened market volatility, hitting the market bottom (i.e. buying when the prices are at the lowest point) is not vital if you invest regularly. Past data indicates that investors still got good returns even if they failed to catch the bottom, if they invest regularly. |
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