Dennis Gabriel, Partner at Upwisery, explains that global trade is entering a new phase.
“We are in a new multipolar trade system, disrupting old rules,” he says. This shift is causing short-term disruptions for economies worldwide.
What investors should do
Gabriel advises focusing on asset allocation to manage risk.
“Take advantage of market corrections,” he says.
However, liquidity outside the core portfolio is important to avoid impulsive decisions.
He also suggests reassessing risk exposure. If equity comprises 70% of the portfolio, consider lowering it to 60-50%. “You can gradually increase exposure as the market shows signs of recovery,” Gabriel adds.
Diversification: A key to stability
Diversification remains crucial. Gabriel recommends hybrid funds, multi-asset funds, and balanced advantage funds. These products offer stability and steady returns during times of volatility.
Gabriel also points to blended investment products like tax-efficient debt plus arbitrage funds. These funds offer predictable yields while reducing exposure to equities.
Understanding short-term debt risks
While short-term debt products, such as arbitrage funds and short-term debt funds, provide liquidity, Gabriel warns against over-reliance.
“They offer stability but can limit long-term growth,” he says.
Short-term debt should be part of a broader strategy.
It allows liquidity while preparing for future investment opportunities.
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(Edited by : Shoma Bhattacharjee)
