22.04.2026
Stock market corrections have always been part of the world of finance and repeatedly occur at irregular intervals. While the ups and downs on the equity market unsettle some investors and lead to panic selling, others take advantage of the turbulence on the market to invest at a lower price level. It’s precisely at such times that a frequently underestimated strategy – anti-cyclical investing – becomes increasingly important.
Stay up to date with the latest developments on the financial markets. Get regular assessments and tips through our investment newsletter.
Investing anti-cyclically means not following the general trend when making investment decisions. This means, for instance, buying shares in the event of a poor situation on the stock market, while most investors are unsettled and selling off securities on a large scale under unfavourable conditions. Successful anticyclical investors – known as contrarians – can in this way benefit from rising prices. The same also applies when stock markets are performing well. Lots of investors want to jump on the bandwagon by purchasing securities. But this is precisely when anticyclical investors sell off their shares. They anticipate a downturn and aim to sell at the optimal time to make the greatest possible profit.
A major advantage of anticyclical investing is the potential for higher returns. By going against the general market trend and purchasing assets that are unpopular at the time, you can often buy them at lower prices in the hope that they will increase in value in the future. After strong price gains in individual sectors such as tech, investors are increasingly asking whether expectations are already too high. At the same time, there is less focus on other areas, such as defensive sectors and emerging markets. This is precisely where anti-cyclical investing comes in: it helps identify opportunities in places where most people aren’t currently looking.
Investing successfully in difficult economic times is a skill that has to be learned. The main risk and the biggest drawback of anticyclical investing is choosing the right time. Entering a downward trend too early or exiting an upward trend too late can result in substantial losses. Investing anti-cyclically therefore requires a sound knowledge of economic factors and trends. For this reason, beginners and inexperienced investors should approach this strategy with caution and, if necessary, seek professional advice.
Crises such as the punitive US tariffs or armed conflicts create uncertainty for investors. But it can be worth considering investing money on the stock markets particularly during economic turbulence, especially if you have a long investment horizon. History shows us that after economic crises, such as in 2008 or during the coronavirus pandemic, the markets recovered over the long term. Even though past performance is no indication of future results, you can assume that the longer you keep your money invested, the more likely it is that price fluctuations will even out over time. Trust your investment strategy when making investment decisions, even during periods of economic crisis and uncertainty.
Although poor economic conditions and stock market corrections often unsettle investors, they can also present opportunities to invest money, particularly if you start investing at a low point and prices then climb again. It’s obviously very difficult to catch the “right time”. Nobody knows exactly when the low point will be reached and when prices will rise again, and it is simply impossible to accurately predict future developments on the financial markets. Some investors are willing to buy securities during periods of stock market correction, consciously running the risk that their value could continue to fall or be completely lost. Others fear further downswings and prefer to offload securities.
An anticyclical strategy requires a disciplined approach. It is advisable to have a clear and well thought-out plan so as to minimize impulsive or emotional actions that can often lead to poor investment decisions. Be aware of this and consider whether anticyclical investment is consistent with your investment strategy. Your advisor will be happy to help you with this.
As an anticyclical investor, it is particularly important to remain calm and level-headed. You must not start to panic if prices continue to drop instead of climbing as anticipated – even if the rest of the world seems to be pursuing a different strategy from yours. Emotional and knee-jerk reactions must be avoided and the defined strategy always kept in mind.
As is so often the case, the key factors in this are a diversified portfolio – which enables you to offset losses in particular sectors, currencies or regions to some extent. Investing according to your investment strategy and with a long-term investment horizon also allows you to manage the risk you take.
