Where I’m investing my money this summer: deVere CEO
Savvy investors around the world are using the ‘summer markets’ period to consider rebalancing their portfolios and, speaking in a recent social media post, the CEO and Founder of one of the world’s largest independent financial advisory organisations said this summer he’s investing in three key areas.
deVere Group’s Nigel Green, specifically, said he is increasing his investment exposure to semiconductors, energy, and Bitcoin.
He explained: “Many investors reduce their market activity during this summer, which leads to lower trading volumes and less liquidity, and this in turn traditionally creates price inefficiencies and increased volatility.
“When used effectively and efficiently, volatility can be an extremely powerful investment tool as you can enhance your portfolios with high quality assets at lower entry points.
“This year, the volatility could be heighted following a wave of central bank decisions last week which could suggest that a new era for monetary policy is on its way.”
Nigel Green continued: “Semiconductors are the building blocks of modern tech. They power a wide range of devices and applications, including smartphones, computers, automotive electronics, data centres, artificial intelligence (AI), Internet of Things (IoT) devices, and much more.
“As the world becomes ever-more digitalised and interconnected, the demand for semiconductor components will grow exponentially.
“In addition, due to the growing need for them, there’s a global race by governments for more advanced semiconductors and quicker and more resilient supply chains. As such, there will be a raft of substantial support packages to the industry.”
The second area which the deVere CEO is actively increasing exposure to this summer is energy.
He said: “Investors are largely ignoring energy and prices are lower than almost any other sector – so already a huge advantage.
“I’m piling in now as I believe that as interest rates peak and the global economy turns a corner, which could be within a year or so, demand for energy will soar.”
Bitcoin, the world’s largest cryptocurrency, is the third major asset class of interest for Nigel Green, currently.
“Not only does Bitcoin remain one of the best performing asset classes of the decade, I believe its performance will further strengthen. Both institutional and retail investors are increasingly seeing the value of a digital, global, borderless and tamper-proof currency and store of value.
“This trend will increase as adoption picks up further and as confidence grows again in the global economy.”
As ever, the deVere CEO stressed the importance of diversification. “While these three asset classes are catching my eye, my main focus is always diversification.
“There remains one clear way for investors to maximise returns relative to risk: the time-honoured practice of portfolio diversification.
“A considered mix of asset classes, sectors, regions and currencies offers protection from market shocks. A good fund manager will help investors capitalise on the opportunities that volatility brings and sidestep potential risks as and when they are presented.”
He concluded: “The investment adage ‘Sell in May and go away’, is a myth.
“The so-called ‘Summer Swoon’ is an important period for investors who are serious about building wealth for the long-term.”