Since November last year, Stock Specialist have identified how investors can protect their investments and even make money during a highly bearish market.
A market correction occurs when the market declines between 10% and 20%. A bear market is indicated by a decline of 20% or more and may come with a recession, which the US markets have already indicated. When you invest in defensive sector funds, your main goal is to defend against significant decreases in share prices that might occur during these events.
We have seen this in the current market where Stock Specialist predicted a 6800 XAO (All Ordinaries) index price point. During the day, the index hit a low of over a 5.5% decline which resulted in this prediction becoming correct and has represented almost a 14% loss currently year to date. So where do we go in the market go from here?
In order to take full advantage of the bearish landscape, the Schroders graph below details the best sectors to be invested in a rising interest rate environment.
Companies such as Woodside Energy, Beach Energy, Pilbara Minerals are some of many companies that will take full advantage of the commodity super-cycle have very positive long-term prospects.
For more information, feel free to reach out to our friendly staff via our website.