3 Strategies to Diversify Your Investment Portfolio Under Trump Regime

No matter how small your savings or investment portfolio is; it can never escape the wrath or the blessings that come with changing economic policies or major market shocks. You always need to be prepared to tackle and deal with the economic changes from an informed position; though not necessarily with the in-depth understanding of the financial dynamics that financial nerds and analyists have. One way of being prepared is by having alternatives to choose from in case your main investment strategy does not yield the expected returns or if market shocks happen to hit hard on your portfolio.

donald trump speaking.With Donald Trump in the Oval Office signing Executive Orders every day that are dramatically shifting the economic orientation of the United States of America, markets are bound to be very volatile and you need to be on the safe side of the volatility. Reassessing your savings and reallocating them to different asset classes will be one of the most effective ways to deal with the heightened investment risk as a result of the new changes being implemented by the Trump administration. The rule of thumb is to diversify your investment using the three outlined strategies below in order to reduce your risk exposure and sail through the changing economic times safely.

  • Choose your stock investments wisely

Investing in stocks in a volatile market can be very risky and without much knowledge of the day to day trading dynamics within the market; you might end up losing a huge portion of your investment in a very short period of time. However, as it is in every market; when one person is losing, there is always another who is gaining.

In this case, there are sectors that are going to be hard hit by the new policies by President Trump such as the clean energy and healthcare sectors. The proposed policy changes in these sectors will adversely affect them and hence analysts predict that their stocks will take a dive.

On the other hand, stocks in the security, construction and oil sectors are expected to be big gainers due to new policies favoring them. To be on the safe side, get the stocks being favored by the Trump administration policies and diversify your stock market portfolio amongst them to spread your risk.

  • Allocate funds to online trading

Owning the stocks during a high volatility season as mention above is a very risky affair and some investors may not feel safe to dip both their feet into the stock market in such times. However, that does not mean that you cannot gain from the volatility in the market for as long as it persists. You can choose to trade on the underlying assets in the stocks, forex and commodities markets without necessarily owning them.

Through Lionexo binary options trading, you will be exposed to different asset classes to trade in and diversify your portfolio; as well as get regular market updates to help you in making informed trading decisions.

The beauty in online trading is that you have the chance of getting into and exiting the market anytime you want and hence your money is not locked down in assets that are losing value. In addition, with binary options trading, you actually can gain whether the price of the underlying asset goes up or down; you just need to get the right prediction and you return huge profits.

  • Invest in gold and other precious commodities

invest in gold.Gold is known to be the traditional safe haven in times of economic uncertainty all across the world. Investors allocate a significant portion of their portfolios to purchasing gold in times of high market volatility and during recessions.

This is meant to preserve the value of their wealth since gold in most cases appreciates in value. In addition, due to the high demand of gold from most investors during such uncertain seasons, the price of the precious metal goes up and in the end you will have both preserved the value of your wealth and benefited from capital gains.

Assigning a fraction of your portfolio to gold and other precious commodities such as diamond and platinum will therefore give you a caution during these uncertain times.

Your ultimate goal is to ensure that despite the fact that markets will be volatile and the economy will experience a recessionary pressure, your investment will go through it all unhurt in terms of its value. The best case scenario will be to have your investment portfolio grow; a possibility that you can only achieve by applying one or a combination of the above recommended strategies.