Market volatility is the phrase of our times. Geopolitical tensions, global economic slowdown and calls for new social orders have been shaking up markets all around the world. Global currencies, currently driven down by complex international affairs, are the main factor affecting market dynamics. In the UK, questions around Brexit and turbulent domestic politics have been the primary movers of sterling in recent months. A combination of all these factors is likely to keep markets volatile for the foreseeable future.
Uncertainty is constantly plaguing the investment world, with market downturns occurring frequently. However, it is important to remember that market setbacks are typically followed by recoveries and, when managed wisely, can represent opportunities rather than pitfalls. Investors who position themselves to take advantage of these movements can even benefit from uncertainty and volatility.
Investment trading can seem like a daunting task at times like this. In the latest episode of Cassiopeia Tv Channel FinancialFox, IR specialist Stefania Barbaglio interviews Angelos Damaskos, CEO and Investment Adviser at London-based Sector Investment Managers Limited, to talk about how best to navigate the waves of uncertain markets and the best investment options in the current situation.
Angelos is indeed very familiar with the investment world. Before setting up Sector Investment Managers Ltd, Angelos had 14 years’ investment banking experience with major banks in London, concentrating on natural resources. For 10 years, he was responsible for structuring the European Bank for Reconstruction and Development’s equity and debt investments in commodities, oil transport, food processing and retail projects in Russia, Ukraine and the Balkans. He also managed a portfolio of EBRD assets in the Balkans, Russia, Ukraine and Central Asia, including corporate restructuring and debt recovery.
The Oil & Gas market is transforming
The energy market is being re-shaped by pushes for renewable energy and concerns about climate change. Alternative energy sources have gained prominence in the market, while more traditional methods are losing their share.
It is undeniable that the oil market has suffered a downturn over the years as the economy moves away from fossil fuels, with the boom in US shale production in 2014 pushing prices down and leading to a difficult recovery. While Angelos believes that there are attractive oil and gas opportunities still to be explored in Latin America, West Africa, and Oceania, he says the global outlook for the oil market remains uncertain.
While the future may seem dubious for oil prospects, gas is increasingly gaining the spotlight in the UK’s energy mix. Because of its properties, gas is a more appealing source. There are some interesting UK companies focusing on gas operations and serving the domestic energy demand.
Precious metals are the best investment
In terms of opportunities in volatile markets, Angelos is confident that precious metals are the soundest options. Exposure to precious metals is important to safeguard your investment in times of slower economic growth, especially in China and other emerging markets.
Angelos is positive about prospects for gold: “I have been a long-time bull for the gold price.” The main catalyst for gold price rises is geopolitics, says Angelos, as gold is seen as an important alternative investment to equities and a safe haven asset.
The role of gold in the current turbulent scenario should not under-estimated. Analysis of gold performance shows that it holds major importance at times of global currency unpredictability, often the direct result of political battles and fragile macroeconomic climates. Last week, gold prices performed well, amid European recession risks arising from US tariffs imposed on the EU and more tensions in the ongoing US-China Trade war. Gold is likely to remain with further gains in this scenario.
Angelos is also bullish on other precious metals, especially silver, which follows the uptrend of gold and goes even higher, showing more upside potential: “When gold is on the uptrends, silver trends to outperform it.” Orchid Research is expecting a ‘strong’ rebound for silver in October, according to Kitco News.
Of the base metals, which are crucial elements in the supply chain for technology products and gadgets, Angelos says copper is the most important, and one to watch. Copper is versatile and has many applications across various industries, although the slowdown in the Chinese economy could bring a negative effect to its market.
His valuable advice for investors: “A very sensible, well diversified portfolio should have strong allocation to safe haven assets, particularly gold and silver. It should also have some exposure to senior miners, with solid operations with long-standing records of production, as well as exposure to junior companies that are growing in the industry, because these are the companies that control the assets that will be the future supply of the commodity market.”
Cassiopeia Services does not offer investment advice. It is very important to obtain professional advice when seeking investment opportunities. Each individual circumstance requires a specific plan that suits the investor’s needs and profile.
CASSIOPEIA INVESTOR SYMPOSIUM: AUTUMN EDITION — NATURAL RESOURCES
Angelos Damaskos will also be attending and giving a short speech about opportunities in the mining sector at our upcoming investor symposium in central London.
Registrations are free and open via Eventbrite: https://www.eventbrite.co.uk/e/cassiopeia-investor-symposium-tickets-73161204131