Investment during Covid-19, explained by Jori Armbruster

I hope you liked today’s webinar where I shared my vision (not my recommendation) on investment during Covid virus. Sorry for the English people because the audio is in Spanish. Here you have the best tips to make investments in this time with Covid.

We cannot count on public pension systems that closely resemble a Ponzi scheme that worked while there were more young people than old people. We must save and invest wisely by putting compound interest to work in our favor so that one day we can live off our savings.

- Crisis= Opportunity

-First comes the study and Second comes the practice. You only learn by making mistakes. When is a better time than now when you have more time?

-Every investment involves risk. Risk and return tend to go hand in hand.

-The ideal strategy depends on the profile of each investor: To define the investment strategy it is important to consider risk aversion, the size of the portfolio, the level of knowledge and the available time.

-Diversification mitigates risk, so technically a portfolio with the highest acceptable risk profile (and therefore the highest potential for profitability) is better, but highly diversified. Since by diversification the deviations from expected profitability tend to neutralize.

-The key to long-term investment is understanding the fundamentals of each asset type so you can intuit when you’re buying cheap.

- Equally important and much more difficult is to understand the economic cycles. We have moved from a slowing economy to a receding economy and this means that we have to restructure our portfolio seeking greater exposure to anti-cyclic and acyclic assets.

-The variable income has a significant margin of fall. It is early to enter unless you are going to start investing and your strategy is a monthly contribution to an index fund.

-The first reaction to the crisis is always fear that causes an overreaction. All the money has gone to dollar accounts devaluing the stock market and emerging currencies. As soon as perspective is taken, people will invest again looking for the most interesting assets for the cycle in which we live.

-The most interesting assets right now for small and medium portfolios are gold, agricultural raw materials without industrial / energy use (and therefore with a procyclical component) and Bitcoin.

• Crowdlending is still a good option as long as the loans are not for consumption and yes for economic activities that will continue to be solvent. Ethichub
• loans are a clear example since the solvency of our farmers depends on the price of coffee that looks very good and the devaluation due to the Mexican peso should tend to reverse whenever it is confirmed that the money is going to leave accounts in dollars heading to other assets.

Not everything in life is risk vs. return. Your money is important to promote change in the world. Impact investing is here to stay as it is the product of society’s awareness and commitment to the Sustainable Development Goals. All investment theses must take into account this macro trend that generates competitive advantages for sustainable assets and competitive disadvantages for assets not aligned with the SDGs.

I hope you have found it interesting. You can learn more about EthicHub on our website ethichub.com or on our social media channels where we will happily clarify any questions you may have.

Video Spanish audio: Investment during Covid-19, explained by Jori Armbruster