How to Invest in Uncertain Times

Every day it seems like the world is more interconnected. If you watch any financial television channel or read the news online, you are most likely aware of how events in one country seem to have an ever-increasing effect on other countries around the world . 

Certain aspects of globalization  can have positive benefits, but when threats of a financial crisis, war, global recession, trade imbalances, etc. do occur, it often leads to the talk of moving money to safer investments and increasing government deficits. This rising uncertainty can confuse even the well-informed investor.

• The move of investor capital from equities to safer assets causes the stock market to depreciate.
• Uncertainty impacts the economy on both the micro and macro level: On the micro level it focuses on companies and individuals, while on the macro level it focuses on the overall economy, like global oil prices and the flight of capital.
• Being well informed and adjusting your investment strategy as events change over time will allow you to invest wisely.
• Diversification is a key investment strategy that prevents significant losses if one area of your portfolio takes a serious hit.