Tenzing pacific services

Market Update for April:
Calm Seas Ahead?

Craig McAvinue By Craig McAvinue – 4 May, 2023

“ Investors should purchase stocks like they do groceries, not like they do perfume.”

Stock and currency markets performance

April has come and gone, an all round positive month for all developed indexes sees us chipping away at the losses suffered during the “annus horribilis” that was 2022 from a equities market perspective. 

April 2023 Stock Performance

Data table is from Google Finance

We see fairly benign results on the currency side, with the USD enjoying mostly small gains, the exception being the Euro.

April 2023 Currency Performance

Data table is from Google Finance

Markets appear calm, steady …

There definitely seems to be a settling down feel to the markets. The VIX index, which measures market volatility, closed the month at less than 16, a number not seen since June 2021 and a significant drop from its March high of 25.

Inflation figures in the United States are down to their target of 5% and while another interest rate rise is expected in the Federal Reserve Board’s current meeting, this will have been taken into account and many analysts believe this will be the final interest rate increase in 2023. Many also believe we will see interest rates being actually cut at a later meeting this year, signifying a change of policy and making the market more attractive as cash becomes less so.

The war between Russia and Ukraine is now well over a year old and the issues that this shock to the system caused are now better managed. 

… so investors should consider getting back to the basics

When it comes to stock markets, everyone knows that you should never feel complacent. By their nature, they are volatile and subject to swings caused by incidents beyond anyone’s control. However the current environment of controlled inflation, decreasing energy costs and the overselling that resulted in the low prices we saw at the beginning of 2023 all suggest we are in for a more steady period of growth in the coming months. 

 

It’s times like these where investors should go back to the basics. Warren Buffet has always been a great advocate of two strategies. One being buying an index fund such as the S&P 500 so you have enough exposure to big companies but sufficient diversification to spread your risk.  The other is deploying Dollar Cost Averaging, where cash is invested periodically over time, usually monthly or quarterly, to average any ups and downs that the market may experience.

 

I read an article written on 20th April which stated that $1,000 invested in the S&P a decade earlier would have tripled to US$3,217.  This is also factoring in the huge falls in the value of some of S&P’s big boys where we have seen hundreds of billions of dollars in market capitalization disappear.

 

The old sporting adage that form is temporary but class is permanent is one that can often be applied to companies and investments. Meta Platforms, which is the trading name for Facebook, suffered huge drops in share price during 2022. This year, however, the price has doubled. Although not near its high of September 2021, if you hadn’t taken profits in  your Meta holdings at some point prior, then your portfolio probably wasn’t being managed properly. The return to a more reasonable valuation is now here. It’s these sort of businesses that Buffet refers to when he talks about quality, with one his many famous quotes stating that “it’s better to buy a wonderful company at a fair price than a fair company at a wonderful price.”

 

Put your portfolio in a position to relax over the summer

The summer months are approaching and this often means a drop in trading volumes.   Share prices have historically performed worse in the period May – October than they have in November – April, with the S&P averaging approximately 3% gains in the former and 7% in the latter.

St Leger Festival

This trend coined the phrase, “sell in May and don’t come back till St Leger’s day.” This year St Leger day is the 17th of September. The stock markets have become a lot more developed and complex since this “strategy” was suggested and with the current seemingly settled environment, owning good companies in good sectors, managed by good managers should serve you just fine over the next four and a half months.

Ask a question. Get a quote. Talk, chat, email – your choice

These articles are intended to give you enough information to make informed decisions, but health insurance is complicated. Whether you still have questions on this topic or feel ready to take the first steps toward getting a policy, our advisors can help.

contact us

Questions? Want a quote or consultation?

We will never sell or use your personal information for any reason other than to provide these services.

Investment Discovery Call

Craig MCavinue Tenzing

We value your privacy. See how we use data and control your options Privacy policy

Open Hours:

Mon – Fri: 8.30 am – 6 pm, Saturday – Sunday: CLOSED

Johannes Heikkila

Advisor
From Finland
Expat for 1 year
Speak Finnish, English & Spanish

Speciality:
- Health Insurance
- Savings Plans

Robert Cunningham

Advisor
From the UK
Expat for 13 years in Thailand & Vietnam
5 years' insurance & financial services

Speciality:
- Health Insurance
- Life Insurance
- Savings Plans

Romain Camillo

Senior Advisor
11 Years in Insurance & Financial Services
Expat in thailand for 7 years
Joined Tenzing in 2020
Speaks French & English


Speciality:
- Health Insurance
- Life Insurance
- Savings Plans"

Nancy Dao

Advisor
From Vietnam
International Business from UK
Lived in Singapore
Speaks Vietnamese & English

Speciality:
- Personal Health Insurance
- Group Health Insurance

Hunter Deems

Advisor
10 years' experience in insurance and investments
Joined Tenzing in early 2020

Speciality:
- Investments
- Savings Plan
- Health & Life Insurance
Patrik Shore Tenzing Pacific Services

Patrik Shore

Senior Advisor
From Sweden & New Zealand
7 years' insurance experience
Joined Tenzing in 2019
Crim Science
Speaks English and Swedish

Speciality:
- Savings Plans
- Health Insurance
- Life Insurance

Geoffrey Mann

Advisor
From the US
Employee benefits & insurance compliance background
Joined the Tenzing team in 2019
Law degree from the US

Speciality:
- Personal Health

Nhu Nguyen

Senior Advisor
From Vietnam
Joined Tenzing in 2017
Fluent in Vietnamese & English

Speciality:
- Group Health & Life Insurance
- Personal Health"
Tenzing's advisor

Ian Comandao

Health Insurance Manager
From Philippines
MBA from Duke University
Expat for 20 years in US, China, Hong Kong & Vietnam Worked at Tenzing since 2018
Fluent in English, Tagalog, Mandarin

Speciality:
- Personal Health Insurance
- Group Health Insurance
- Business Insurance

Craig McAvinue

Director of Wealth Management
From the UK
25 years' expereince in investments & insurance
Expat in Thailand for 5 years
Chartered Accountant by trade
Holistic approach to consulting his clients

Speciality:
- Investments
- Savings Plans
- Health & Life Insurance

Quinn Miller

CEO & Managing Partner
From the US
Joined Tenzing in 2014
Expat for 10 years in Vietnam
Finance & Entrepreneurship Degrees

Speciality:
- Group Health Insurance
- Life Insurance
- Savings Plans"
  • 84 35857 2629
  • 84 35857 2629
  • quinn.miller@ten-pac.com

Quinn Miller

CEO & Managing Partner
From the US
Joined Tenzing in 2014
Expat for 10 years in Vietnam
Finance & Entrepreneurship Degrees

Speciality:
- Group Health Insurance
- Life Insurance
- Savings Plans"