The current uncertainty is challenging – but it also offers the opportunity to review your own investment behavior and to reflect on proven principles. Because long-term investing, discipline and patience have proven their worth, especially in turbulent times.
Many investors are currently asking themselves: "Is now the right time to invest?" The honest answer to this is: It is almost impossible to catch the perfect entry or exit time: it's usually only possible to recognize turning points in retrospect.
That's why investing money is less about guessing the future. Having a clear, long-term strategy with pragmatic implementation is much more important. By following these guidelines, you can achieve your goals and take advantage of opportunities even in turbulent times.
Particularly in turbulent phases, it is worth taking a look back in time. Stock market history shows that capital markets can also cope with severe crises. The stock market crash of 1929, the oil crisis of 1973, the bursting of the dotcom bubble in 2001, the financial crisis of 2008 and the coronavirus pandemic: In the short term, all these events have resulted in significant market distortions Nevertheless, looking at the past, investing in the stock market has always paid off in the long run.
The well-known long-term study by Pictet Wealth Management impressively confirms this point. In the latest edition of its study on the performance of Swiss equities and bonds, Pictet shows that Swiss equities have achieved an average nominal annual return of 6.8% since 1900 – compared to 3.9% for Swiss franc bonds.
The key message: Even major crises were stomached by the markets. Short-term fluctuations are unavoidable – they are the price we pay for long-term return opportunities. However, those who invest with patience and broad diversification have very good prospects of long-term success. The study highlights that Swiss equities remain the asset class of choice over the long term: A substantial equity allocation makes sense with a correspondingly long investment period and appropriate risk capacity.
Investment decisions are rarely purely rational – especially in uncertain times, the fear of losing money is great: What happens if I invest now and the markets subsequently fall? This concern cannot be dismissed out of hand. This risk is particularly real in volatile phases. Concurrently, historical performance over the past 125 years demonstrates that a long-term market entry has consistently proven worthwhile, even when executed at the most inopportune moment.
Sound advice can help to alleviate these concerns and find a solution that not only makes sense from an investment perspective, but also allows the investor to continue to sleep well at night.
An effective way to navigate uncertain times is to invest gradually using the Zurich Phased Investment Strategy. Instead of investing a large amount at once, the capital is invested in several tranches – e.g. spread over several months. This approach offers various advantages: By not investing all your money at once, you significantly lower the risk of buying at the wrong time This also lowers the emotional barrier to entry. Ultimately, this creates a structured and disciplined approach to investing.
For larger amounts in particular, for example as part of pension planning or when withdrawing pension assets, the Phased Investment Strategy bridges the gap between the need for security and the desire to invest with a focus on returns. In this way, investors benefit from long-term opportunities – and can continue to sleep well even in turbulent times.
With Zurich Invest Fund Accounts, Zurich Invest Zurich Invest Asset Management and CapitalFund single premium life insurance, you can invest your capital in stages and gradually increase the proportion of equities over a period of months. This reduces the risk of entering the market at an unfavorable time. The CapitalCertificate and Zurich Invest Certificate capital protection solutions are also available. These certificates offer a safety buffer and protect your assets from any price falls on the stock markets, while you can continue to benefit from the opportunities offered by the capital markets. These solutions can be flexibly combined to individually balance potential returns and security. The CapitalFund single premium life insurance with guarantee also offers a high level of security, as the capital is secured by a Zurich guarantee.
Another advantage with Zurich: Customers don't have to make their decision alone, but receive individual and empathetic support from experienced consultants. The specialists answer open questions, point out the advantages and disadvantages of the various options and thus help you to make a smart investment decision.
Two factors offer you security: Risk diversification and long-term investment. Risk diversification means that you diversify your assets across different asset classes such as equities, bonds, real estate and tangible assets (e.g. gold). In the past, long-term investments have shown that investors could simply sit out possible losses in value on the stock markets, as all negative developments have balanced each other out in the long term. Zurich also offers you investment products with capital protection, e.g. certificate solutions. With CapitalFund single premium unit-linked life insurance, Zurich guarantees you up to 80% of the investment and also offers a guaranteed death benefit.
There is no such thing as a crisis-proof investment in the strict sense. But you can significantly reduce your risk. Broadly diversified portfolios in professional asset management, staggered investments (e.g. via Zurich Invest Fund Account or CapitalFund single premium) and capital protection solutions such as certificates with a safety buffer are important for this. These help to cushion market setbacks and exploit opportunities at the same time.
A broad diversification of your portfolio can help you to reduce currency risks. These include internationally oriented investments, a weighting in Swiss francs and real assets such as real estate, equities and gold. Zurich also offers investments with a currency hedge in Swiss francs (hedging).
There is no such thing as an entirely risk-free investment. Although traditional savings accounts are very secure, they lose purchasing power in the long term due to inflation.
Zurich therefore offers various solutions for risk-averse customers that combine protection mechanisms with potential returns. These include, in particular, conservative asset management solutions, fund investments with a higher bond component, the Zurich Invest Certificate, the Capital Certificate and the Capital Fund as a single premium with guarantee.
This allows personal investment strategies to be implemented that are geared towards stability and at the same time offer attractive return opportunities.
A bank account also offers security up to CHF 100,000 – but interest rates are currently so low that the return is usually "eaten up" by inflation. A broad diversification across different asset classes is therefore recommended for a long-term investment. Investment solutions with capital protection or a guarantee also offer additional security.
Get advice: Zurich consultants analyze your individual situation and work with you to develop a strategy that matches your risk profile.
Let us advise you to find the best solution for you. There are numerous possibilities: With a PaymentPlan or a private retirement pension from Zurich, you can finance a regular guaranteed income. Certificate solutions and asset management can also be an interesting option. The Zurich Phased Investment Strategy allows you to make a staggered entry, thus reducing the risk of investing your money at an unfavorable time.
Zurich Invest Certificate and Capital Certificate are investment solutions with a safety buffer that are aimed at risk-adverse customers. Investments are made in a certificate that is influenced by the performance of a basket of shares. This is made up of 15 selected Swiss equities. This gives investors the opportunity to participate in the performance of this share basket, while the safety buffer helps to cushion market corrections to a certain extent.
There is rarely a perfect time for an investment. With staggered payments, discipline and a long-term perspective, the risk can be significantly reduced. In addition, professional entry management helps to reduce the risk of investing "at the wrong time". Zurich supports you with a clear structure and individual advice so that you can enter the market step by step and with a solid foundation.
Don't panic – it's often best to do nothing at all. Because losses only become real when you sell. You should therefore remain true to your long-term investment strategy, even in turbulent times. Zurich will work with you to analyze whether adjustments make sense.
Particularly in turbulent market phases, it can make sense to continue with savings plans. By investing regularly, you benefit from the so-called average cost effect and acquire more units at lower prices when prices fall. Our experts at Zurich will be happy to advise you on how you can make the most of your savings plans, even in challenging times.
