Rahim Daya, President of Barclays Private Bank in the UAE and the Middle East, advised investors in the Middle East to diversify their investments between asset classes or within the investments themselves, and added that many investors have investments distributed between different sectors and geographical regions, but since the emergence of "Covid 19" disease, Dealers have become more present than ever before, they have more time than usual, indicating that all markets face great pressures and fluctuations, and that made many dealers focus on how their investments are affected by this situation.
He told the UAE today that investors should continue investing, as stocks can continue to achieve returns in the medium and long term, pointing to the importance of not monitoring the peak of the stock movement, as dealers ’concerns regarding the appropriate timing can be addressed by relying on the sales and purchase rates data. Calling for commitment to "high quality" companies (with strong data, stable liquidity flow and a coherent business model).
Rahim Daya said that "the future is not clear, and the persistence of fluctuations will lead to the exclusion of more parties from the labor market, indicating that in this situation, the best options must be taken and dependence on an active management, ensuring that errors do not occur continuously. Active departments add during this period a real value The results of investments, noting the importance of diversification in asset classes or within the investments themselves, which is necessary, as the same applies to the return and risks of investments (the best is to adopt strategies based on options).
He added: "Investors must adapt to the" new normal "situation, as communication with your consultants is necessary during this stage, and those dealing with video communications have adapted amazingly, indicating that each customer is different from the other and focuses on different aspects, some of them focus especially on Their companies are operating during this period, while others in the current period see an opportunity for more investment, whether in the market or in real estate, saying that "real estate in the United Kingdom and southern France is very popular with investors."
He said that Barclays is implementing investment strategies based on the customer's risk level, pointing out that investors tend to diversify their businesses more than they focus on investments focused on one group of companies or sectors. Saying that for sectors, we are the healthcare and technology sectors the most attractive, because they have a solid foundation.
He said that the health and technology sectors data are supported by demographic data, as the world's population continues to grow in numbers (more than two billion until 2050) and their average age (16% will be over 65 years by 2050). Also, thanks to the growth it provides, the healthcare sector is highly valued.
The health care sector is particularly prominent when compared to other "defense" sectors (commodities, utilities, and telecommunications services), as it has stronger growth prospects and clarity of this growth. He pointed out that there is an increase from investors to deal in gold and will continue to do so for several reasons, including that gold is a safe haven, and that low and negative interest rates reduce the cost of acquiring zero-interest assets.
The price of gold has risen by more than 10% this year, benefiting from investor demand, and the total gold acquired by ETFs has increased by more than 15% on an annual basis, in addition to the most important being increasing gold trading as part of a strategy to diversify investments, especially When other hedging methods are expensive.
Rahim advised investors to continue investing and diversifying them, without looking at the peaks in stocks in the markets. Reliance on rates data helps to address concerns about choosing the correct timing. It is not understanding the timing of the market that produces profits, but the time we spend in it.