4 months ago • 3:17 mins
You’re in for a challenging few years: the market is in the throes of peak growth, rising interest rates, high inflation, and low market returns. And while no one’s entirely sure how long this environment might last, now seems as good a time as any to prep your portfolio as if it’s here for the long haul.
Tech companies might not be the hero they’ve been in the past, but one group of stocks could still save the day: those with a low “beta”.
A stock with a beta lower than one indicates that it’s less volatile, meaning it’s less likely to drop in price when the wider market goes down. Low beta stocks work best when you’re not sure how long and damaging a potential economic recession will be – exactly the sort of backdrop you can expect over the next five years.
But there’s a risk of a rude awakening. So Stéphane says you might want to approach the latest stock rally with caution.
The global investment firm has updated its outlook for 2023. So Stéphane’s taken a look at how it sees things going and what you can do to prepare for it.
Big fund managers and retail investors alike are starting to see its beauty, but as Russell notes, you can still buy this long-shunned asset at good prices.