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Diversifying your investments will help deal with volatility

Although the economic outlook for Mexico looks complicated, GBM recommends that investors have a long-term investment horizon, seek advice from a professional and not make sudden movements in their investments, as they could have a loss in the value of their assets.

With inflation approaching 7% per year and with analysts reducing their estimate for economic growth to 2.20%, according to a Bank of Mexico survey, the country’s economic outlook is not encouraging.

Previously, what investors did in these situations of volatility and economic uncertainty was to take refuge in gold, government debt or companies, however, these actions can only be momentary.

“Seeking refuge in assets can be a double-edged sword, since in an initial perspective it seems that we are safeguarding our investments, but very possibly we are doing the opposite, since when those periods of volatility pass, very possibly we will not be part of these upturns in the market”, commented Juan Carlos Herrera, Director of Wealth Management of GBM.

For this reason, it is advisable to have a diversified portfolio advised by a professional and not to make any movements, this will ensure long-term returns and we will be able to take advantage of the market rises after the turbulence.

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