Regular readers will know I have long maintained that this is an unusual economic downturn characterised by high debt. One of the consequences is that central bankers are increasingly frustrated in their efforts to stimulate economic growth. Measures once considered radical – prolonged low interest rates, quantitative easing (QE), negative interest rates – are now the norm. Time will tell how well the financial system copes.
As for equity markets, I leave market timing to wiser investors. But tried and tested strategies can help steer portfolios through uncertain times. I have recently highlighted the importance of diversification. An additional strategy is to seek value – to ‘go deep’ to shelter from choppy waters. The private equity sector ticks both boxes, and I have introduced a new holding to the Growth portfolio during March.
Unquoted attractions