Expect the unexpected

first_imgAnd certainly, even something as unlikely as a global pandemic was top of a very short list of things that the late statistician and epidemiologist Hans Rosling worried about in his excellent 2018 book Factfulness: Ten Reasons We’re Wrong About The World – And Why Things Are Better Than You Think.Too much of a good thingSo what can investors actually do? Enter Your Email Address Our 6 ‘Best Buys Now’ Shares As usual, Warren Buffett expressed it best. Click here to claim your free copy of this special investing report now! Post-referendum, UK-focused stocks were a bargain. The resulting logic: load up on them. But not to excess. Ditto banking stocks, pre-pandemic – especially for income investors. Ditto oil and resources stocks.Ditto just about anything, in fact, if done to excess. “Only when the tide goes out do you discover who’s been swimming naked,” he famously remarked. And with the receding tide, their discomfiture has been laid bare.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…Déjà vuIn one sense, it is a little surprising. Many of these investors were around in 2008, which is the last time that the tide went out on anything like this scale. Expect the unexpected So a wise course of action is to expect the unexpected. If something can go wrong, it’s probably best not to assume that it won’t go wrong. The clue lies in the word ‘over-exposure’. It wasn’t that investors’ reasoning and logic were necessarily wrong – it was that the resulting strategies were pursued to excess. Because as investors, all of us know that we don’t have a crystal ball, providing 20-20 vision into the future. We have forecasts, and guesses, and predictions, and trends – but they all say what might happen, not what will happen. So you’d think that most investors would have the right memories or instincts in place. See all posts by Malcolm Wheatley Simply click below to discover how you can take advantage of this.center_img Seemingly not: the combination of a hunger for returns and over-confidence – especially the latter – is a dangerous brew.Expect the unexpectedInvestors caught without their shorts – or bikini – will of course protest that they didn’t see it coming. And when it comes to a global pandemic, I have some sympathy with that viewpoint.But only some sympathy. Even so, the 2016 Brexit referendum and the ensuing shock acted as a reminder, with many UK-centric shares – such as those in the FTSE 250 – experiencing double-digit falls. Because, as economist and Nobel Prize winner Harry Markowitz (of portfolio theory fame) remarked, diversification is “the only free lunch in finance.” Diversify, diversify, diversify. Malcolm Wheatley | Saturday, 21st November, 2020 Image source: Getty Images Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Risk is reduced, at a modest cost to returns – and indeed, over the long run, arguably no cost to returns. I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. And undeniably, for many investors the tide has gone out. Brexit, electoral surprises, economic shocks – and of course, a global pandemic that a year ago, none of us saw coming.In each case, investment strategies that appeared rational and sound have been found wanting. Over-exposed to particular equity sectors or asset classes, investors have seen capital values plunge and income shrink. 5 Stocks For Trying To Build Wealth After 50 Markets around the world are reeling from the coronavirus pandemic…And with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains.But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be daunting prospect during such unprecedented times.Fortunately, The Motley Fool is here to help: our UK Chief Investment Officer and his analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global lock-down…You see, here at The Motley Fool we don’t believe “over-trading” is the right path to financial freedom in retirement; instead, we advocate buying and holding (for AT LEAST three to five years) 15 or more quality companies, with shareholder-focused management teams at the helm.That’s why we’re sharing the names of all five of these companies in a special investing report that you can download today for FREE. If you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio, and that you can consider building a position in all five right away.last_img

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