After Jerome Powellpresident of the Federal Reserve of the United States (Fed), gave his speech at the jackson hole encounter, the US stock market fell sharplyleading the S&P 500 through a 3.4% decline in Friday trading.
Unfortunately, the casualties could be far from over, according to executives at Bridgewater Associatesthe controversial tycoon’s hedge fund ray dalio.
Specific, Greg Jensenco-director of investments, spoke with Bloomberg and stated that the aggressive stance of the Fed has not yet been fully appreciatedso you expect the markets to fall “between 20% and 25%”.
According to the projection, the S&P 500 would fall to the 3,000/3,200 point zone, approximately the same levels as in mid-2020.
In this framework, the executive did not explain how to position himself to survive the situation, but it can be seen that the fund’s two largest holdings are Procter & Gamble and Johnson & Johnsontwo bigs defensive companies engaged in the production and marketing of mass consumer goods.
These companies not only have low volatility, but also they distribute dividends in dollars on a quarterly basis, which cushions the impact of widespread falls and provides stability to the portfolio.
Invest in Procter & Gamble and Johnson & Johnson
Investing in these companies from the country is very simple. To do so, all you have to do is open a principal account in a stock company regulated by the National Securities Commission, such as Bull Market Brokersa free process that takes no more than five minutes, and, after depositing the desired funds from a bank account of the same owner, acquire Cedears.
The Cedears or Argentine Certificates of Deposit are financial instruments that are equivalent to buying the underlying share listed abroad (NYSE: PG / JNJ), but can be traded in pesos (BCBA: PG/JNJ) and follow the evolution of the CCL dollar. In this way, they become a great alternative to avoid Argentine risk, cover themselves from a possible devaluation and obtain an income in dollars through their dividends.
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Ray Dalio’s fund projects a fierce stock decline | Dolarhoy.com