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Patience and prudent risk-taking should be at the forefront of investors’ minds in 2010, according to Russell Investments.
In an analysis of the outlook for 2010, Russell investment strategist Andrew Pease has suggested that while it may be tempting for investors to take action this year, they would be better off exhibiting patience and prudence.
The analysis said that although there may be fewer opportunities this year than in 2009, Russell believed a valuable lesson could be observed in the principle of discipline and process in investment decision-making.
“In 2009, the worst outcomes were suffered by those who panicked and lost their investment discipline early and missed the subsequent market rebound,” the analysis said. “Successful investors stood out due to their rebalancing discipline and the use of rigorous decision-making processes to take advantage of opportunities.”
The Russell analysis described 2010 as a transition year which would be less challenging from a market-direction perspective.
It said that while the once-in-a-lifetime opportunities offered in credit and equities markets 12 months ago had faded, valuations on some corporate bonds and shares remained modestly attractive.
