almost 4 years ago • 2 mins
Welcome back to this look at investment pros’ latest tips, as told to Bloomberg. Given stocks’ shocking first quarter, should Finimizers tweak their portfolios to avoid losses in the second? 🤔
We’ve already mentioned BlackRock’sfondness for the only five major investment classes that actually gained last quarter: US dollars, Japanese yen, American and German government bonds, and good old gold. Increased exposure to such “safe havens” decreases risk.
Other big investors favor going on the offensive. Causeway Capital Management notes that the aerospace industry is experiencing major turbulence; but in the long term, major airplane manufacturers will remain strategically important – and some resilient airlines should gain from rivals’ collapses (as well as a lower oil price). Causeway therefore recommends buying shares of the biggest US airlines through the US Global Jets ETF (exchange-traded fund).
The William Blair Macro Allocation Fund is also on the warpath. Its bosses focus, however, on Brazil, suggesting that last quarter's selling (which saw the Brazilian stock market fall 37%) was overdone given positive signs of economic reform. With Brazil’s currency also potentially undervalued, William Blair points to the iShares MSCI Brazil ETF as an investment opportunity – assuming the country can sort itself out 🌞
While Bloomberg’s pet experts come up with different ideas, all have one thing in common: a focus on long-term quality. As the likes of Airbnb andSlack demonstrated this week, companies (and, indeed, countries) will need to have plenty of cash to withstand what may be a prolonged recession – and potentially secure future growth by subsuming struggling rivals.
So regardless of the fact US stocks just had their best week since 1974, now could be a good time to adopt a more “active” strategy with part of your portfolio, seeking out investments that stand to outperform markets overall thanks to certain qualities they possess. Luckily, Finimize is on hand with a brand-new Pack this weekend all about just such Investment Styles... 🙂
Disclaimer: These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment advisor.