People who invest their savings in investment portfolios of stocks, bonds and global funds they are disoriented.
Because after years of receiving high returns and few scares, they find that their portfolios have lost value in recent weeks, and They saw a good part of the profits obtained disappear, and even a part of their capital decreased.l.
Therefore, it is convenient to understand, briefly, why the large losses in value occurred in the global stock markets, due to the sole effect of plan how to protect investment portfolios in the future.
First of all, yese years of cheap money used by large investors to bet on the stock markets are over, that is, bank credit for speculative purposes became more expensive. And this, among other factors that we will see later, led to high rollers liquidating positions in recent weeks, which caused the values of stocks, bonds, and digital currencies to skid.
Of course, the smaller investors took note of all this alteration of the markets when the blow had already been felt in their portfolios. But all this is already ancient history.
That is why it is convenient to ask ourselves how to continue and what to do with the savings because, in addition, we all hear that the The Federal Reserve of the United States will raise interest rates, that a global recession is coming and energy prices will continue to riseand with it the threat that businesses and households around the world will consume fewer goods and services.
Then it is time to think about what to do in this scenario.
In the first place, it seems inconvenient to sell good quality shares of companies with established and well-known businesses in which you have invested, even more so at a time of low. I suggest you review your positions and you will find out which are the “usual” marks. Because it is most likely that in the medium term the “classics” will recover value, as always happened after financial crises.
And a color fact that may help you make decisions is that investors stopped choosing the giants of consumption – for example, the giant employer Walmart whose shares fell 15% since the beginning of the year or various technology shares that in other At times they achieved great gains, as is the case of Meta- of rising 76% today it is 10% down or, ZM (Zoom) that of gaining more than 400% today is also in negative numbers.
Of course, it is not the same to be invested, for example, in Microsoft or Pfizer to weather the storm than in some more attractive but also more dangerous bets.
Secondly, American inflation today reaches 7% annualized, which disrupts the activity of the markets, so it is not a good strategy to leave money sleeping in accounts that yield little or nothing.
Then, and hand in hand with the rise in interest rates that crosses all global financial markets, investment opportunities in fixed income appear again, that is, good quality bonds that return to yield 4 or 5% per year and mature in one or two years. Of course, these yields do not cover the inflation that occurs today in developed countries, however, of course, worse is nothing, and it is a way of earning something while waiting for better times.
*Gabriel Holand is Director of HR Global Financial Advisors, specializing in Financial Planning and Investment Projects.
by Gabriel Holland*
