The secret of a good investment in the financial markets? Don't be dazzled by the "siren song."
The nature of financial markets has changed greatly over the past 25 years. While there has always been a speculative component in it, at certain times in particular, its true soul has always been quantitative and fundamental in nature. That is, based on real data and medium-term goals.
Finance, in fact, while constituting a growing part of the global economy has always been only a reflection of the real economy. Most investors, professional and knowledgeable, had long-term investment goals and the risks were adequately offset by the returns.
The search for value to invest
The exponential growth of the financial sector together with the accumulation of private savings, the media attention, the offer of passive instruments easily purchased by the retail segment, the explosion of algorithmic systems that search for trends, the growing attention to easy and short-term returns and finally the expansive quantitative policies of central banks, the negative rates of some countries, have partly polluted the search for value in the markets. For these reasons, it is important to have an investment process and selection that takes these factors into consideration.
Back to basics
All is not lost, however, and just as the laws of physics are irrefutable in the long run, so are the laws of fundamental evaluation. Active management, with a multidisciplinary,competent approach, attentive to real economic trends, manages to ignore the "background noise" of the short term and focus on the long-term symphony. Not to be bewitched by the "siren song" is not a simple operation but essential in order to avoid being caught in the traps of a market sometimes too focused on the objective of easy and fast gain. This allows you to capture value and yield for a long-term investment while protecting the value of your capital in times of increased volatility.
VECO Invest, a structured and recognized independent asset manager, is constantly looking for value to invest in, for the benefit of its clients.