Navigating Volatility: Opportunities in an Uncertain Market
23 January 2023
To all Financial Friends
I do hope you have positive plans for 2023. The investment outlook is hard to read but volatility will be the most likely outcome. Volatility provides opportunity for profit and profit taking. So do take advantage and keep tuned in to these commentaries and your one-to-one contact with me.
Speaking of contact I would be delighted if you would use the link below to book a time to Zoom together in my diary:
https://calendly.com/yourfinancialfriend/1-2-1-with-rob-harris
Just 20 minutes of updating the financial background, the profit-making opportunities ahead, and the safeguards you might consider taking, could be of great benefit and you are welcome to book some time to talk.
The background of political unrest, war, and rocketing inflation has been more than challenging. The tension of banks seeking to control inflation by finding the right (or wrong) interest rate rises has been no light matter. This last comment is reflected in our previous awareness of what we called ‘the turning point’ (see below).
The year 2022 was a disastrous year in the main for investors across the globe. It is hard to find any asset (investment type) that made gains over the 12-month period. That said, global infrastructure funds (put forward in our commentaries here) achieved a cheerful 8% return and maintained a steadier performance over the 12 months than most other asset types.
Gold disappointed but in the last three months gold funds have rocketed up by an average of 25%. Inflation linked bonds have made small gains in the last month too. Our monthly savers tracking the FTSE 100 Index have done well – Gains of over 40% across the last 2 years and 3 months.
The Past -What We Said Then……
18th June 2021
Please remember the key issue of the coming Turning Point. The turning point is when, in my view, equities will take a dive and more of your portfolio needs to be switched (ahead of the market) to more defensive holdings.
The Turning Point
What Is it? The point at which banks and governments withdraw printing money (quantitative easing). Especially when due to inflation, they are forced to raise interest rates to attempt inflationary control. That is happening already but at a controlled pace. This could allow economies to cope and remain stable. This is the hope. If rates rise to quickly economies could be stifled. This again means moving ahead of time to safe haven holdings.
Conclusion
Consider structuring your portfolio to hold: Inflation Linked Bonds. Gold and silver. FTSE 100 (on watch). Infrastructure funds. Funds focussing on Consumer Staples Stocks.
Whilst still researching and enquiring there seems no reason to move away from the structure outlined in the ‘conclusion’ above. With equities haven fallen steeply there could be an opportunity to invest monthly into equities with a medium to long term view of significant profit?
The FTSE 100 Index curiously reaches towards it’s all time high. Could it be time to diversify your holdings away from the Index?
Once again do go ahead and book some time to talk:
https://calendly.com/yourfinancialfriend/1-2-1-with-rob-harris
PLEASE NOTE: A financial or economic commentary like these, are written to explain, interpret or give an opinion on economic events and markets to help readers understand what’s happening and why it matters. Designed to help you make informed decisions of your own by making you aware of opportunities, risks and potential rewards in the market.
