President Donald Trump’s unpredictable moves, like slapping tariffs on trading partners one day and pausing them the next, have left traders and investors scratching their heads. No one is sure how the rest of the year is going pan out. Despite this chaos, experts say there’s still money to be made if investors play it smart. Here are five ways in which they can do so.
Markets reacting to Trump’s flip-flops
There is a sense that investing right now can feel daunting. The market jumps or dips based on headlines, making it tough to spot a clear direction. But even in this uncertainty, experts suggest focusing on strategies that protect against sudden swings while targeting long-term growth.
One such strategy is diversified risk management: “Investors should adopt a diversified risk management strategy and focus on finding opportunities for the long term in times of uncertainty and absence of any clear trend,” says Puneet Singhania, Director at Master Trust Group.
Diversification is simply spreading the capital towards different sectors and types of investments. This reduces the risk of losing everything if one area takes a hit.
Another tip is to think long-term instead of chasing quick wins: Viral Chheda, Senior Analyst at SSJ Finance & Securities, explains, “Volatility offers an excellent opportunity for building a long-term portfolio.” He recommends picking stocks with strong growth potential and solid management, which can grow steadily even when the market bounces around.For a balanced approach, Sonam Srivastava, Founder and Fund Manager at Wright Research PMS, suggests a “barbell strategy.” This means mixing safe, reliable investments, like well-established companies, with riskier bets in undervalued or oversold sectors. It’s like having a safety net while still taking a shot at bigger gains.Keep cash handy: Most experts advised investors to keep some cash handy to buy the bargain gains when prices drop.
Sectors that can withstand Trump blows: Even when the overall market might be vulnerable to the swings in global sentiments, not every pocket is a part of the chaos. For instance, domestically driven sectors can be a good bet.
“Sectors like cement, infrastructure, and rural consumption are tied to India’s needs, not global headlines. Government spending on roads, bridges, and rural projects keeps these sectors humming,” said Shruti Jain, Chief Strategy Officer at Arihant Capital Markets.
Defensive sectors — Singhania points out that “there is always a demand for essentials like food, personal care products, medical needs, and utilities,” making them less shaky in turbulent times.
Betting on diversified conglomerates: Big conglomerates that are diversified into multiple businesses can soften the blow if one sector stumbles. “Conglomerates diversified into a range of businesses can insulate investors against any shock in a particular sector,” says Singhania.
To conclude, by diversifying, focusing on the long game, investing in different businesses of conglomerates, picking sectors with strong domestic roots, and finally keeping cash in hand when needed, investors can still make enough profits to ride the market volatility.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
