By Jonathan Anderson
1. Be careful The first and most important point for investment next year is to be careful: Don’t throw all of your assets into the market, and don’t try to buy everything. Yes, from stocks to bonds to currencies financial markets have all fallen sharply, and the emerging world looks particularly ...
With global markets in turmoil and investors running very scared, we give a list of our biggest investment recommendations for the rest of 2008. 1. Stay in cash Global stock markets are starting to look very cheap, and we’re starting to see some of the more intrepid funds start to take on exposures at these levels – but for most investors our best advice is: don’t try to “catch a falling knife”. The global slowdown is still very much underway, and the trough of the cycle is at least another two quarters ahead. Even then most of the risks are skewed to the downside and there’s no guarantee that we don’t wake up in 2009 with a much longer recession. So while there are good potential returns to be made by “timing the trough” of the market, there are also strong risks that the market keeps on falling into next year. ...
