The War Environment / Investing
5 February 2024
To all Financial Friends
I had expected to be writing to you with a list of strategies to consider for 2024. The undoubted escalation of war activity has led me to considerable research, taking my time to indicate consideration for those concerned about the escalation occurring now. A mail will come shortly on strategies to profit in these times.
In my commentary of 23rd November last I wrote..........
We cannot ignore two wars and the overall economic background. Russia/Ukraine has and does worsen the outlook for inflation. Martin Wolf, economics editor of the Financial Times suggests that if the Israel/Hamas war is contained 'then the economic effects will stay insignificant'. He also commented 'it is possible that it will spread and become far more serious.'
We surely deeply pray that the conflict is contained, but investors fearing otherwise could shortly be moving funds into the military/defence sectors, oil and energy, agricultural products, healthcare, infrastructure and safe haven products including gold. I absolutely do not enjoy contemplating anything less than a peaceful outcome but my responsibility is to keep my Financial Friends aware and informed.
I see that investments reflecting some of the assets held in the funds mentioned above have risen in value markedly, over the past month to date. Given the ongoing war and proxy war events, you might want to consider your portfolio in this light.
It would take many words to spell all this out but, with the research done, perhaps 15 minutes on Zoom, for those who wish to exple ore this theme further. Here is the link to book a time and date for more information and guidance to help your understanding http://www.calendly.com/yourfinancialfriend
Meanwhile, over the past three months nine of the main holdings of students out of eleven assets, have risen three months to date. The most exciting have been technology gaining 26.83%, then American equities 20.63%. Profit makers and short-term profit takers awake?
Yes, we remind ourselves that investments fall as well as rise in value along the way. A thoughtful strategy tends to create the former rather than the latter of these possibilities.
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.
