“I am about to have a significant amount of new money to invest. Autonomies are correcting back to moving averages. Bonds are to be avoided. Raw materials are in downtrends, especially speculative ones like gold and silver. Apart from holding very liquid assets, what should investors in my situation do?”
I assume you are considering investment positions.
Personally, I would consider stock markets, although at these levels you do not need to be in a hurry. I would nibble at Autonomies where you have seen some mean reversion; where valuations are not too overextended, and where a competitive yield is available. I would also consider some funds; not least investment trusts (closed-end funds) in markets which you like. For instance, I like Japan which is still competitive on book value; China is inexpensive and a candidate for medium to longer-term recovery potential, and India is a high-beta play on next year’s general election result, assuming Narendra Modi remains the front runner. There are also cyclical recovery plays in big-cap miners which have decent yields.Back to top