Investors often try to reconcile a constructive long-term view with a more challenging short-term outlook by simply waiting.
While near-term uncertainty is elevated, CIO thinks now is a good time to invest for the long term. (ddp)
But this approach also entails risks: The potential savings from waiting tend to be limited, but the potential opportunity costs can be much larger. And looking to the long term, we think several potential drivers of a secular bull market remain intact. So, we think now is a good time to invest, and avoid the risk of being left, potentially indefinitely, on the sidelines.
Near-term uncertainty remains high.
But longer term, we think a “Roaring ‘20s” scenario remains on the table.
So, we think now is a good time to invest for the long term.
Did you know?
Investment view
Waiting can be costly for investors, as the risk-reward of doing so deteriorates over time. And although near-term uncertainty is high, we think several potential drivers of a longer-term secular bull market are still intact (more on this here). We believe investing in a diversified portfolio today can help investors both mitigate near-term risks and position for long-term performance, without running the risk of being left on the sidelines.
Main contributor: Vincent Heaney
Original report – Why should I invest now?, 2 September, 2022.
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