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Investment Strategy

Devising a profitable and durable investment strategy in times of economic slowdown is becoming increasingly challenging, says Jens Spudy…

 

(c) Marco Verch / Flickr / 26775800468_cb68069011_o / Attribution 2.0 Generic (CC BY 2.0) / https://creativecommons.org/licenses/by/2.0/

(c) Marco Verch / Flickr / 26775800468_cb68069011_o / Attribution 2.0 Generic (CC BY 2.0) / https://creativecommons.org/licenses/by/2.0/

Devising a profitable investment strategy has become increasingly challenging in the current market environment. During the past year, most equity and bond markets recorded significant price declines – as did a number of commodities, including gold. As a result, investors are rightfully wary of these asset classes. Even for experts, it has become increasingly difficult to predict the trajectory of prices over the short- and medium term. Nonetheless, stocks continue to play an important role in any long-term investment strategy. However, careful portfolio allocation and strategic allocation monitoring are
increasingly important.
Real estate requires a similar investment approach. As part of an overall investment portfolio, real estate remains a solid performer. However, historically high valuations mean that selecting new real estate investments with care has become more important than ever.
So which investments are best suited to a phase of economic slowdown? Direct investment in tangible assets is a wise choice under current market conditions, and it can offer attractive yields. To maximize returns, potential investors should keep a number of important factors in mind.
First, a high level of market expertise is the basis for professional investment selection. Many potentially lucrative markets are very complex, and require a high level of expert knowledge. This is true, for example, of investments in the areas of digitalization, medical technology and artificial intelligence. Potential investors are well advised to draw on the expertise of partners who enjoy access to a wide network of industry experts.
Another important consideration is access to asset classes that deliver consistent outperformance. These include, for example, large private equity funds.
Finally, potential investors are well advised to seek out independent financial advisors and investment managers who offer high-quality, detailed digital asset reporting and asset controlling services which provide investors with a maximum of transparency and control.
To ensure success in today’s market, a solid partnership with a wealth management provider who can provide future-oriented, innovative and sustainable investment services is more important than ever.


Jens Spudy is executive partner of Spudy Family Office

Photo Credit: (c) Marco Verch / Flickr / 26775800468_cb68069011_o / Attribution 2.0 Generic (CC BY 2.0) / https://creativecommons.org/licenses/by/2.0/

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