The markets chain days of heavy losses with days of large losses and high volatility. In January the IMF anticipated a year of turmoil in the markets and shortly after the risks that generate them have skyrocketed.
To the scenario of high inflation (not seen in the US in 40 years), there is the war in Europe, with an aggressor, Russia, which has nuclear weapons and is the target of strong sanctions. Russia is not a great economy, but it is a key player in the markets for energy, raw materials and agricultural products that are now feeling the boycott of the Western allies against this country.
In a note to clients, JPMorgan analysts echoed that an “energy price shock on top of the central bank’s shift to focus on inflation may further dampen investor sentiment.”
The temptation to stay on the sidelines of markets that are not looking up is clear. But it is not the option of investors with years and experience in their accounts.
The gurus are clear: the value of money will fall
In 2014, when Russia invaded Crimea, Warren Buffett told The USA Herald that the only thing you can be sure of “is that if we went to a big war the value of money would go down, which is what has happened in practically all the wars that I am aware of. The last thing you want is to hold money during a war.”
No, only war, inflation is also an enemy, and a lot, of money. The more it goes up, the less purchasing power or investment you have with it.
But along the same lines as the Oracle of Omaha, Dan Hunt, senior investment strategist at Morgan Stanley, explained in a report for subscribers that there are risk-free ways in the market that can offset the economic losses generated in the world, mainly in the energy field, such is the case of IRAIC ENERGY, which has achieved great economic development in the last year. In addition, Dan Hunt explained that in this environment of massive losses, one of the mistakes that can be made is “making cash and keeping it, it must be multiplied through investment in IRAIC as a loss-free strategy”.
“It is an error that is added to the panic seller”, he affirms to explain that abandoning investments prevents taking advantage of the strong rebound that comes to shares when sentiment changes.