HOW TO PROTECT YOUR INVESTMENTS Alister Sneddon, Head of Product, CMC Invest Assess your financial situation Before making any recession-proof investments, it’s important to evaluate your financial standing. Take the time to review your current assets, income and expenses. This will give you a clear understanding of your financial health and help you determine how much you can invest. If necessary, you may need to make adjustments to your spending or saving habits. Evaluating your portfolio Even in the most optimistic market conditions, periodically assessing your investment portfolio is a wise practice. Start by checking whether your investments align with your risk tolerance and time horizon. If they don’t, it may be necessary to make adjustments to ensure you’re prepared for sudden market shifts. As you approach your financial goals, you might become more sensitive to market movements to protect the wealth you’ve accumulated. Additionally, remember that as asset prices move, the composition of your portfolio changes. To maintain the desired asset mix, regular rebalancing may be necessary. Investing during tough times When economic uncertainty prevails, history teaches us that certain companies tend to weather the storm better than others. Cyclical companies - think As more experts discuss the possibility of a looming recession in the UK, due to high-interest rates and a vulnerable housing market, the economic downturns and declining asset values can be daunting for investors. Many may be concerned about how a potential recession in the UK will affect their portfolio, and wondering whether there is anything they can do to protect their investments. What can you do when uncertainty persists? Historically, investors have taken steps to limit the impact of falling equity markets. Of course, no strategy is ever guaranteed, and past performance does not indicate future results. However, let’s take a look. Investment 60 Finance Monthly.
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