In recent years, the global economy has experienced significant turbulence—from the Covid-19 pandemic, geopolitical conflicts, supply chain disruptions, to uncertainties in the Fed’s interest rate policies and trade wars—all of which have influenced financial markets, including in Indonesia. Amid this uncertainty, a key question arises: is long-term investment strategy still relevant and effective?

PT BNI Sekuritas (BNI Sekuritas) believes that long-term investment remains a valid and effective strategy even under current conditions.

This approach emphasizes consistency, discipline, and a deep understanding of company fundamentals. It is considered highly suitable for retail investors aiming to grow their portfolios in a sustainable manner.

That said, BNI Sekuritas acknowledges that some clients may prefer to be active traders. They emphasize there’s nothing wrong with that, as ultimately, everyone seeks to make a profit.

“In volatile markets, it’s natural to feel unsure and ask, ‘Is this the right time to invest?’ or ‘Should I exit before the market correction worsens?’ But looking back at history, while market corrections do occur during crises, they tend to recover over time,” explained Fanny Suherman, Head of Retail Research at BNI Sekuritas, in an official statement on Monday (July 7).

She illustrated this with historical examples. During the 2008 global financial crisis, the Jakarta Composite Index (IHSG) dropped 58% from its peak but rebounded by 77% within 6 months and surged 113% over the next 12 months.

Then, during the 2013 taper tantrum, the index declined by 24% from its high, but recovered 16% in six months and 31% within a year from the bottom.

When the Covid-19 pandemic hit in 2020, the IHSG fell 33% from its peak but regained 24% in six months and 59% within 12 months of bottoming out.

“For anyone interested in long-term investing, the key is to remain consistent, understand the company’s fundamentals, and not get swayed by short-term volatility,” Fanny emphasized.

She outlined several reasons why long-term strategy remains viable. First, company fundamentals are the foundation—even though market sentiment should still be monitored.

“In the short term, stock prices are largely influenced by macroeconomic sentiment, interest rate changes, and geopolitical news. But in the long run, stock performance is driven primarily by the quality of the business itself,” she said.

Therefore, investors should pay attention to fundamentals such as profit growth, operational efficiency, future core business prospects, and competitive advantage within the industry.

Second, maintaining consistency and diversifying the portfolio helps manage risk. A good way to stay consistent in the market is to apply the dollar-cost averaging method—investing a fixed amount regularly regardless of market conditions. This helps avoid buying at market peaks and ensures steady accumulation even during downturns.

Additionally, diversification across different sectors or financial instruments is crucial. “Combining defensive sectors like consumer goods with cyclical sectors such as energy or commodities can help cushion against major global shifts,” she added.

Third, uncertainty often brings opportunity. Market volatility can present chances to buy high-quality stocks at attractive valuations. Long-term investors can use these moments as starting points for portfolio growth.

“In the midst of global uncertainty, long-term investing can serve as a reliable strategy. By understanding fundamentals, staying disciplined, and interpreting market trends wisely, investors can build sustainably growing portfolios. In investing, success doesn’t lie in timing the market perfectly, but in how long and consistently one stays in the game,” Fanny concluded.