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How should you invest when you don’t know which way the economy is going to go?

February 19, 2020

February 19, 2020

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How should you invest when you don’t know which way the economy is going to go?

If you watch two seconds of the news, it should be clear to you that we live in a volatile world. There has been geopolitical turmoil with Brexit and the US-China Trade Wars. We’ve faced natural disasters. And now we’re seeing coronavirus affecting supply chains around the world. 

If you watch two seconds of the news, it should be clear to you that we live in a volatile world. There has been geopolitical turmoil with Brexit and the US-China Trade Wars. We’ve faced natural disasters. And now we’re seeing coronavirus affecting supply chains around the world. 

For all the uncertainty around, we’d expect the market to reflect this. But it isn’t. Bruno Paulson, a portfolio manager at Morgan Stanley, recently said that this makes him nervous about the market as a whole. He went on to say that like everyone else, he doesn’t know what’s going to happen to the market. 

Bruno manages Morgan Stanley’s Global Finance strategy, a company that, in past economic downturns, has had more success in keeping margins stable and lowering long-term volatility than the wider market.

So what does this mean for investors? How should you invest when you don’t know which way the economy is going to go?  

Bruno offered some sage investment strategy advice:

“[Invest in] the companies where it really doesn’t matter what happens.” 

In other words, during uncertain times, it’s wise to invest in companies that are unlikely to feel economic downturns as much as other companies. These kinds of companies are often the ones that offer goods and services that are necessary for society to function normally.  

Reach Markets have access to a range of investment opportunities. Our job is to provide investors with access to senior management behind the Companies and in depth information so you can complete your due diligence.

We have extensive data rooms on all of our investments, can organise meetings with senior management and often host online investor briefings with Company CEO’s/MD’s.  

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