When is the best time to accumulate high quality assets?


Disclaimer: Please note that all content and information in this blog are for educational and informational purposes only and should not be taken as professional investment advice.

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The best time to accumulate high quality assets is during times of macroeconomic uncertainty.

I would rather acquire a stock which has a depressed price due to macroeconomic issues rather than firm-specific issue.

Recovery from macroeconomic issues is more certain than firm-specific issues. Even if the asset doesn't recover from the macroeconomic issue, the impact won't be as great as buying a stock which doesn't recover from a firm-specific issue.

Why? Macroeconomic issues affect almost all assets, so if the issue persists, your stock won't be the only one depressed — everything else in the market would be. And this is perfectly fine because it presents a great buying opportunity for high quality assets at low prices. 

As compared to buying a stock which doesn't recover from a firm-specific issue. When everything else is rising but your stock isn't, that isn't a good thing.

Therefore, during times of macroeconomic uncertain or rising geopolitical risks, one should be on the lookout to purchase high quality assets at depressed prices especially when the market enters a correction, or better still, capitulates. Such times provide the best value for your buck and as such will provide above average returns on your investment.

Purchasing high quality assets at distressed prices brought about by such systematic issues provides both high and certain returns, unlike firm-specific issues which may not provide the same certainty of recovery as with macroeconomic issues that oftentimes resolve over time whether with or without government intervention. 

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Disclaimer:
The content and information provided on this blog is solely for educational and informational purposes, and should not be construed as financial advice. The accuracy or completeness of the content and information provided in the blog cannot be guaranteed. Before making any investment decisions, it is important for readers to research and carry out independent verification of the information provided, or consult with a qualified financial professional. No warranty and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of actions taken based on the ideas or information found in this blog.

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