HOW TO STAY AFLOAT IN RISING TIDES
THE SAGE OF OMAHA, Warren Buffett, is full of great sayings, but my favourite one is probably this: “You never know who’s been swimming naked until the tide runs out.”
What exactly did he mean by this? The answer is that the stockmarket’s currents are always shifting. Investors who don’t adjust their course run the risk of being left all alone. Stranded. High and dry. In the nude – exposed.
So, what sorts of major tides might be coming our way this year? The waters, as we know, are already pretty choppy: I am writing at a time when nations are pledging billions in climate financing; when cybersecurity investment is hitting record levels; and when investment in mining is falling.
But I may be writing at a time of relative calm compared with the tides ahead in 2022. The prudent investor needs to prepare for higher interest rates, new Covid mutations and possibly even a major energy crisis.
