UAE: Are gold, bonds best bets for investors amid global market turmoil?

UAE: Are gold, bonds best bets for investors amid global market turmoil?

Individual investors are urged to remain calm, evaluate their portfolio to understand the risk exposure and take a systematic approach to assess overall holdings

Published: Mon 27 Mar 2023, 6:00 AM Last updated: Mon 27 Mar 2023, 6:41 AM

Investors have become increasingly cautious about risky instruments as the equity markets are hammered around the world after the collapse of the SVB, Signature Bank and takeover of the Credit Suisse.

To make the matters worse, Germany’s Deutsche Bank and Switzerland’s UBS are in hot waters, too, as their shares are under pressure, witnessing massive selling last week.

In turbulent times, investors often behave in a myopic manner, ignoring the bigger picture and becoming more susceptible to loss-averse bias, which leads to poor financial decisions.

Hence, individual investors in the UAE and Gulf retail investors are urged to remain calm, evaluate their portfolio to understand their risk exposure and take a systematic approach to assess their overall holdings and weigh in the long-term prospects.

With volatility doesn’t seem to be dissipating in the near future, gold, low-volatility dividend-paying equities, and bonds — treasury bonds, high-yield bonds and highly rated corporate bonds – are the best bets that UAE and Gulf investors should take into consideration to shield