Welzia warns that making investment decisions at times of high volatility can come at a cost

MADRID, 6 Jul. (EUROPA PRESS) -

Asset manager Welzia Management has warned investors that making investment decisions at times of high volatility can come at a "significant cost".

"Faced with a situation of economic slowdown like the current one, and the shadow of the recession hanging over the markets, it is common to see outflows, despite the fact that volatility is common when investing in equities. But the data shows that trying to synchronize with the market can have a negative impact on the profitability of the portfolios", underlined the general director of the firm, Carlos González.

The company has analyzed the behavior of the stock markets over the last 100 years, with the aim of looking beyond the current complex situation and reinforcing its vision of long-term wealth management.

In their analysis, the Welzia experts have observed that, between 1951 and 2020, every six years there have been falls of more than 20%, and after each of these falls there has been a recovery period in which new maximums.

This first half of 2022 the S index

"Although past performance should not be taken as a guide to future results, it does indicate that it is usually not a good idea to sell after a big downturn, and it also allows us to see how well the fund manager has been able to adapt and recover after having suffered that great loss", highlighted González.

In the current context, Welzia recommends investors "stay away from the noise and emotions to stay true to long-term goals and not make reactive investment decisions, have a diversified portfolio and entrust wealth management to experienced managers ".