“Change is the only constant” is probably the most apt description of the investment market of the past few years. The post-pandemic stock market was once hailed for its triumphant progress following the rise of technology stocks. However, the global economy and the investment market have both been hit by a list of unfavourable factors since the beginning of the year, leaving the overall economy at higher risk of a recession and resulting in heightened investor risk aversion. How should investors respond to this highly volatile investment market?
At the investor education webinar titled “Navigating rising rates, inflation and economic slowdown” held in early October, Under-Secretary for Financial Services & the Treasury Mr Joseph Chan reminded investors to be more prudent in the complex and ever-changing investment environment. When reviewing their investments or considering a particular investment, investors should carefully assess the fundamental factors and take note of traditional investment wisdom, such as diversification and investing in what you can afford to lose, etc. These factors could help improve resilience and flexibility of their investments.
In addition, other guest speakers discussed the macroeconomic environment and the impact of high inflation and rate hike. They also explored investment strategies during high inflation and rate hike cycles. For example, how to adjust an investment portfolio, protect the purchasing ability of your capita, or how to deploy investments for the long term in a downward economic cycle. They also discussed whether real estate could be used to counterbalance inflation and MPF investment management, etc.
Investment is a long journey, during which ups and downs are inevitable. This is why the ability to weather adversity is crucial. You may want to replay the webinar via the following link to learn more about how to combat market adversity (the webinar was conducted in Cantonese).
