Was 2022 a good year? 🤔🤔
For many, it was a year of significant losses across most global investment assets, leading many to avoid checking their portfolios altogether.

However, such times help create great investors by revealing many aspects of the market's reality.
I, too, have witnessed markets in such conditions over the past decades and have chosen to look
beyond my own disappointments, focusing on genuine investment education rather than mere speculation.

📍 Today, I am summarizing the insights from 2022,

which reinforce recurring themes I've observed over many years.

1. Every asset has its cycle📈
In the previous three years (2019-2021), stock markets and asset prices soared, even during the Covid-19 crisis,
contrary to the expectations of many. As we moved into what seemed like a recovery phase, many were eager to invest.
But in 2022, as the world began to turn again, the MSCI World Index fell by approximately 19%. Similarly, markets like
China and technology stocks, which many believed would thrive, also saw significant declines.
 

If we take a moment to reflect, we'll see that "every asset indeed has its cycle.
"We can never accurately predict the future, and thus, "investing based on future predictions often leads to losses."

2. Diversification🌎
This is an easy concept to state but hard to execute in real-life situations! Diversification remains the most crucial and correct rule in investing.
In 2022, while most global stock markets fell by nearly 20%, some markets, like Thailand, managed to rise. Three years prior (2019-2021),
most advice suggested avoiding Thai investments in favor of foreign ones for better returns.

True "diversification" means that our investment portfolio should include various assets and countries, without constantly shifting based on
the latest news. By investing in any asset for the long term, we achieve the average returns of that asset. For instance, the global stock market
has an average annual return of 6%, while the Thai stock market has averaged 8% per year over the past 20 years. Many investors, influenced
by constant news, frequently change their portfolios and miss out on these average returns.
 

3. Consistent Investing 📊
This behavior is key to achieving true wealth 😊. This conclusion comes directly from personal experience. Initially, I sought "investment windfalls,"
hoping my investments would multiply quickly. Early on, I experienced such windfalls several times but didn't see significant growth because
I lacked proper saving and investing habits. Easy gains were often spent, and I expected continuous windfalls.

However, as mentioned in the first point, markets fluctuate. I eventually realized, through my work in financial planning,
that substantial savings come from consistent investing and disciplined saving. By investing surplus income regularly,
money can grow beautifully and sustainably.

For example, investing 100,000 baht annually in the SET50 fund (comprising Thailand's top 50 stocks) over 20 years would amount to
a total investment of 2 million baht. Today, this portfolio would be worth 4 million baht, representing a gain of about 104%.
Thus, by developing the right saving habits, anyone can achieve sustainable wealth.

In conclusion🙏, thank you for the valuable lessons from the investment markets.
These lessons guide us in planning our financial investments.

I encourage everyone to create and grow their financial investment plans sustainably, as hoped.❤️

Rungroj Kaeokanjana, CFP®
Co-Founder & MD
of Union Wealth Mutual Fund Brokerage Securities Co., Ltd