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(CNN Spanish) - In the United States we are living the longest economic growth cycle in history: we have surpassed 10 consecutive years of positive numbers last July. And there we continue with an annual growth close to 2% and repeating a question, key at this time on Wall Street: will we be close to the end of the cycle?
Well, we have treated that doubt this week at GloboEconomía with Mel Lagomasino, executive director and managing partner of WE Family Offices. His response has been quick: "The economic cycles do not die of old age", they die because some kind of catalyst is produced, of whatever type, that ends with them.
That catalyst could be a geopolitical crisis, a bad monetary management, or any other different circumstance, which today may be on the horizon, but that nobody ventures to predict. With what is important to be prevented, but not exaggerate.
Mel Lagomasino's recommendation for the investor at the moment is above all "to protect the livestock", and for that it is important to have a "defensive strategy".
A tactic that, says Lagomasino, should be specified in three points. The first is to maintain more liquidity than usual. On the one hand, he explains, as a precaution, but also because if there is a stock market crash there will be opportunities and it is good that we then have reservations to buy.
Second, it is advisable to increase the quality of all our investments. If they come badly, they will suffer more doubtful investments, than those that have a greater consistency.
And third diversify. Try to have in your portfolio investments that are not too closely linked to each other. In other words, if a sector falls, do not take them all ahead because they are too linked. The more independent they are from each other, the better.
Do not miss the program this Saturday at 7 pm ET and Sunday at 5:30 pm ET.
Stock Market Economic GrowthGloboeconomicsInvestmentsWall Street
