The ghost of stagflation is approaching again. Investors need to make sure that their personal financial planning strategy is like mitigating risk, building wealth and growing in the long run, says a leading independent financial adviser.
Stagflation is a time when slowing economic growth and unemployment coincide with rising inflation.
Nigel Green, CEO and founder of deVere Group, is a major central bank, including the US Federal Reserve and the Bank of England. Raise interest rates To combat soaring inflation.
“Central banks are likely to run out of tools to tackle sustained inflation and lower GDP growth,” Green explained.
“We need to be prepared to see the ghost of stagflation again. Policy makers have demanded higher wages in line with rising prices, so since the 1970s when consumer price inflation was supplied to wages. I was hoping that I would never come back. “
Mr Green added that the stock market is expected to continue as the central bank continues its efforts. Highly volatile Cards remain a big sell as headwinds continue, with the blockade in China further disrupting the global supply chain.
“But many investors will be looking for potentially very rewarding buying opportunities brought about by this turmoil,” Green said.
“They are working to get some high quality stocks that have a solid future, what they would consider to be a’discounted price’. They don’t want to miss it. After all, there are always winners and losers in volatility attacks. This is where good fund managers come in. “
When the market began selling on Thursday, Green said: Familiar investor We continue to invest, and in fact we are increasing our investment without paying attention to or being confused by short-term fluctuations or headlines.
He urged investors to make sure their portfolio was properly diversified.
“A considered combination of asset classes, sectors, regions and currencies provides protection from market shocks.”
“Stagflation can be seen as the” worst “scenario in both worlds. But now there are huge opportunities for investors as well, “Green said.
“Don’t be one of the investors on the sidelines right now.”
https://www.financialmirror.com/2022/05/09/dont-wait-for-ghost-of-stagflation/ Don’t wait for the ghost of stagflation