Investing during a market rally is easy but during periods of economic uncertainty things are more complicated. If you are intent on preserving your capital then you may wish to consider a tilt towards defensive investments. In this video, I look at how to do that in various scenarios and also consider which funds may provide you downside protection. To find out more about becoming a pensioncraft.com Premium member, so that you can access the trackers I show you in this video and many other benefits, use this link What Else PensionCraft Offers: 💡 Book a coaching session with Ramin so he can answer your questions in a one-to-one video call via Zoom: 📰 Sign up for our free weekly market roundup to get news and views about what's going on in the stock market and wider economy 📖 Understand investment in more depth with my online courses ❓ Join PensionCraft on YouTube and you’ll be supporting me to make more content and I will answer your questions and respond to your comments on YouTube as a priority Timestamps 00:00 Introduction 00:32 Defensive Investing 01:03 Risks 02:22 Inflation 06:11 Credit Crunch 11:31 Recession 14:32 Defensive Funds 19:47 Conclusion Where Else You Can Find Me 🎧Check out our weekly podcast "Many Happy Returns" on your podcast provider of choice 🌐 Website - 📱 Twitter - 👨 Facebook - 🔗 Linkedin - Tools I Use To Create My Videos ✔️ My primary data source is SharePad and an affiliate link for this is here (This link provides new users with a special offer and gives me a small commission) The rest of the tools I use are free open source software: ✔️ ggplot2 package in R for my plots ✔️ RStudio to edit and run R code ✔️ OBS to record my videos and live streams ✔️ Kdenlive to edit my videos Take A Look At Some Of My Other Videos & Playlists 📹 Investment Strategies playlist 📹 Income Investing playlist 📹 Investing With Vanguard playlist 📹 Portfolio Building Blocks playlist DISCLAIMER All information is given for educational purposes and is not financial advice. Ramin does not provide recommendations and is not responsible for investment actions taken by viewers. Figures that are quoted refer to the past and past performance is not a reliable indicator of future results....(read more)
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Defensive Investing: Guard Your Capital in Uncertain Times Investing in the stock market can be a rollercoaster ride. Sometimes you will experience high returns and other times, significant losses. However, during uncertain times when the markets are volatile, it becomes even more crucial to adopt a defensive investment strategy to protect your capital. Uncertainty can arise due to various factors such as geopolitical tensions, economic instability, or even natural disasters. These events can lead to rapid fluctuations in the stock market, making it difficult to gauge the best investment opportunities. In times like these, investors must implement defensive measures to safeguard their hard-earned money. Here are a few defensive investing strategies to consider during uncertain times: 1. Diversification: One of the golden rules of investing is diversification. Spreading your investments across different asset classes helps reduce the risk of significant losses. Invest in a mix of stocks, bonds, cash, and even commodities to create a balanced portfolio. By diversifying, you are lessening the impact of market downturns on your overall investment. 2. Focus on Dividends: Dividend-paying stocks can provide a steady stream of income during tumultuous times. Companies that consistently pay dividends often have strong financials and stable cash flows. These stocks tend to be less volatile compared to growth stocks, making them a defensive investment option. 3. Defensive Sectors: Certain sectors often perform better than others during economic downturns. For example, utilities, healthcare, consumer staples, and telecommunications are considered defensive sectors. These industries are less affected by market fluctuations as their products and services are considered essential, regardless of the economic environment. 4. Quality over Quantity: Opt for quality stocks rather than chasing speculative investments. Look for companies with a long history of stable earnings, low debt, and a strong market position. Quality stocks generally hold up better during market downturns, making them a safer bet to protect your capital. 5. Bonds and Fixed-Income: During volatile times, investors tend to flock towards safer investments such as government bonds or high-grade corporate bonds. These fixed-income investments offer a steady income stream and are generally less volatile compared to equities. Bonds act as a hedge during market downturns, preserving your capital. 6. Have an Emergency Fund: It is essential to have an emergency fund set aside for uncertain times. This fund should ideally cover your living expenses for three to six months. By having a safety net, you can avoid dipping into your investments during emergencies, allowing you to stay invested for the long-term and ride out market fluctuations without panic-selling. 7. Regularly Review and Rebalance: Regularly review and rebalance your investment portfolio, especially during uncertain times. As market conditions change, there might be a need to reallocate your investments to ensure a balanced and diversified portfolio. Stay informed about economic trends to make informed decisions based on the current market environment. Defensive investing is all about protecting your capital during turbulent times. By diversifying your investments, focusing on quality stocks, and having a well-balanced portfolio, you can mitigate potential losses and navigate uncertain market conditions with confidence. Remember, the key is to stay calm and systematically plan your investment strategy to achieve long-term financial goals. https://inflationprotection.org/protect-your-capital-in-times-of-uncertainty-with-defensive-investing/?feed_id=110993&_unique_id=6497c23715aec #Inflation #Retirement #GoldIRA #Wealth #Investing #CreditCrisis #defensivefunds #defensiveinvesting #defensivestocks #inflation #investing #investingstrategy2023 #pensioncraft #Pensioncraft #ramin #raminnakisa #recession #stockmarket #stockmarketcrash #Stocks #InvestDuringInflation #CreditCrisis #defensivefunds #defensiveinvesting #defensivestocks #inflation #investing #investingstrategy2023 #pensioncraft #Pensioncraft #ramin #raminnakisa #recession #stockmarket #stockmarketcrash #Stocks
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