Muhannad Al-Ama, managing director of BIM Capital, said, “In light of the Market dipsCurrently, it is difficult to determine where the bottom is? However, the numbers indicate that some indicators have not yet reached the lowest level recorded last year.
Al-Ama added in an interview with Al-Arabiya that the Dow Jones and S&P indices, despite their significant declines since the beginning of this year, have not yet reached the lowest level in 2021.
He pointed out that the Nasdaq index has already reached its lowest recorded level since 2021, expecting a further decline with the beginning of a new phase of interest rate hike by the Federal Reserve coinciding with the global economic slowdown in China, Europe and the United States, and therefore there are many reasons to make stocks decline more.
He explained that a recession cannot be avoided in light of the US Federal Reserve’s insistence on raising interest rates and reversing the easy fiscal policies adopted in recent years.
The blind believe that the Goldman Sachs report on the growth of the US economy increases optimism, noting that the violent rise in interest rates in conjunction with what is happening in China and Europe will lead to a recession in the global economy, and a decline in stock and commodity prices.
On the ideal way to avoid the worst investment, Al-Ama said, “Since the beginning of the year, we have been advised to acquire defensive stocks in the health and consumer sectors,” in addition to stocks in the industrial sector, which are expected to recover this year with the improvement of supply chains.
The blind advises investors to increase the cash in investment portfolios, especially since the markets are going through a period of revaluation of assets and stocks, and therefore the risk of a portfolio declining is much greater than the risk of diminishing the purchasing value of the portfolio’s liquidity.