SqSave - Looking Ahead as we begin 2022

Jan 8, 2022

Hey! We’ve been here before!

It’s barely one week into 2022, and we get so many worried questions…

Is the market going to crash again like when Covid caused global panic in Feb 2020? Will the USA Federal Reserve move to start increasing interest rates crash the markets? You get the picture.

Frankly, as human emotions weigh heavily, this is quite expected. Experience shows that “GREED” and “FEAR” are primal drivers of human behaviour in investment cycles. Can we learn the lessons based on objectivity or do we recall the events with emotions? The truth is that the data is now available for AI to make sense of. So why not do so at SqSave?

SqSave removes human emotions in investing…

If we remove emotions, and focus on data, the situation becomes more objective. Using data analytics, SqSave AI looks at statistical probabilities of investment factors and how they tend to behave as a complex system. Before we give you a mathematical headache, read our simplified whitepaper on our investment approach called “FAME” if you wish to.

Let’s make objective sense of what we fear…

SqSave uses machine learning to analyse past investment cycles and learns from the experience. When SqSave went live in late 2019, we did not know that Covid was already lurking in the dark, ready to test human emotions and investments in the months ahead.

At that time, SqSave was designing portfolios with a large allocation to alternatives such as Gold. We noted this as in our human professional investment experience, we hardly ever invested in Gold. But here, SqSave did.

Little did we know then what SqSave was able to do. We only found out more when Covid caused investment markets to tank in Feb/Mar 2020 – barely 6 months after SqSave was soft launched.

How did SqSave do in the Covid Crash of Feb/Mar 2020?

In short, our SqSave reference portfolio did very well compared to the market. SqSave was able to manage the downside well and recovered very quickly with the overall returns better than the general market. For more details, read our blog “How My SqSave Portfolio Behaved Through the Covid-19 March 2020 Market Crash”.

Looking ahead into 2022…

We believe that SqSave will continue to remain unemotional and deal with the data as it comes. That our SqSave AI by design – to dynamically predict probable returns with a focus on narrowing the predicted volatility based on the risk setting you choose. Our SqSave will then make adjustments to your personalised portfolio to reduce the volatility for the highest probable returns. You can read about our one-year Return to Volatility measures in our blog, “SqSave Full Year 2021 Performance +14% to +25%”.

Investment Outlook for 2022…

As we had shared in our blog, “SqSave Investment Outlook 2022”, we need to watch 3 factors, namely:

1. US Federal Reserve Taper
2. Global Supply Chain Bottlenecks
3. China’s Economic Performance

The USA Fed moves to raise rates are expected, but the exact timing, size and speed are subject to short term speculation which in turn, causes volatility. SqSave does not look at short term fluctuations. Depending on your time horizon, SqSave considers how different data factors behave over different time periods and in different risk environments to arrive at probabilities of simply “risk versus return”. This is humanly impossible to do.

Smart Investing with SqSave AI

The SqSave investing lessons are essentially:

1. Understand your own investment risk profile – which includes your risk of loss tolerance and capacity to take on risk, versus your time horizon and age,
2. Remove human emotions when investing and stay invested.
3. Invest early to capture the power of compounding and get a longer runway to absorb the inevitable market volatility.

Invest Smarter! Sign-up at www.sqsave.com today!

Regards
Your SqSave AI Team

Disclaimer

The contents herein are intended for informational purposes only and do not constitute an offer to sell or the solicitation of any offer to buy or sell any securities to any person in any jurisdiction. No reliance should be placed on the information or opinions herein or accuracy or completeness, for any purpose whatsoever. No representation, warranty or undertaking, express or implied, is given as to the information or opinions herein or accuracy or completeness, and no liability is accepted as to the foregoing. Past performance is not necessarily indicative of future results. All investments carry risk and all investment decisions of an individual remain the responsibility of that individual. All investors are advised to fully understand all risks associated with any kind of investing they choose to do. Hypothetical or simulated performance is not indicative of future results. Unless specifically noted otherwise, all return examples provided in our websites and publications are based on hypothetical or simulated investing. We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because hypothetical or simulated performance is not necessarily indicative of future results.

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