Performance Review: July 2020All three MYTHEO functional portfolios ended the month of July positively despite the US economy shrinking by 32.9% in the second quarter, which was the worst ever economic contraction in US history.
Our ThoughtsAll three MYTHEO functional portfolios gained steadily despite the economy being at its worst. The Nasdaq Composite Index, which is heavily weighted to the US technology sector, rose to a new all-time high in July. Moreover, major commodities have also traded higher on the expectations that global demand is not too far away from recovering.
Investors should treat the current market scenario as a lesson to learn how the financial market works. In short, the financial market is not the economy! Markets are forward-looking, whereas the economy is backward-looking. Hence, it is no surprise to see the market and the economy moving in different directions.
More importantly, the financial market tends to move much earlier before the actual economic recovery can be seen and felt. Therefore, a weak economic situation should not be an excuse for one to not invest. Such excuses would only cause more losses than benefits.
That is why we strongly advise investors to invest consistently rather than trying to time the market. Always remember that the best time to invest was yesterday and next best time is always now.
https://www.mytheo.my/mytheo/blog-app/67-pe...eview-july-2020 Based on June report, the YTD for growth is at -13.08%. Strangely, they did not report the YTD for Jul. Not sure is intentional or...
I hope many of u DCA enough to bring back growth portfolio to positive.