In a turbulent time for each person’s personal economy, choosing the right savings strategy is very challenging. Invest-Foresight discussed the pitfalls of forming a personal financial cushion with an investment strategist of Managing Company “Arikapital” Sergei Suverov.
– Sergey, is it worth thinking about savings, or current economic situation make you lay low?
– I think that any person should always have financial cushion. Moreover, keeping money for the so-called rainy day is quite in Russian traditions.
– Will a rainy day come?
– Perhaps we are on the eve of the global crisis, that, naturally, will also affect Russia. Perhaps there is a hyperinflation scenario that will also affect our country. Therefore, it is better to have some stock of money so that you can survive difficult times with less losses.
– Which financial instruments should this stock include?
– I would probably increase the share of cash in savings now. Today banking sector liquidity is declining, although key banks retain their sustainable positions. But nevertheless, cash is always available, it can be used at any time when necessary.
– What about gold?
– Gold really remains a good tool for saving. Gold bars, and gold coins are always an actual investment. However, it is clear that there are various financial risks, moreover, recently, they have intensified.
– Will they be projected for next year?
– Yes, next year the ruble devaluation is possible. Going into history, the year 2022, by the way, was quite good for our national currency, but it is unclear if 2023 continues this trend.
– Why do you think so?
– The fact is that oil-related restrictions came into effect in December with price cap on Russian-exported black gold. As a result, export revenue may fall, and this poses risks to devaluation. That is why I think that part of the money should be kept not only in gold, which is quoted in foreign currency, but also in foreign currency itself.
– In terms of investment riskiness, stocks have been enough risky as a financial instrument, so they remain?
– As 2022 showed, the most risky way to invest were not stocks, but investments in cryptocurrencies. However, this year securities also lost a lot in value, both Russian and world ones. However, even among the falling securities, you can find individual issuers who feel pretty good in the medium term. And, in general, yes, stocks remain a riskier way to save money than other financial instruments.
– If we are talking about investing, then is it possible in the current economic situation, not only to preserve, but also to increase savings? Or is it practically a guessing game?
– We see that today, facing increased inflation rates around the world, it is very difficult, if not impossible, to increase your funds. If we talk about Russia, then inflation is predicted for 13-14%, while rates on deposits, for example, account for 7-8%. Bonds give less than 10%, stocks fall. Therefore, this year it is necessary to think not about how to make money, but about how to save existing savings.
– Quite a lot of experts say today that in the current economic situation investments not in financial instruments, but in the quality of life become increasingly important. How you feel about this opinion?
– Of course, you need to invest in education, in health, in real estate for living. Also, many are interested in works of art, including the modern one – possessing them really increases the emotional component of life, and in the future, upon resale, you can get profits. Such investments today really become more and more popular.