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The US has been growing economically for 10 years in a row.


Is the end of US growth approaching? 25 / March / 22 Homer Barton Visitors: 434 Rating: ★★★★★

In the United States, we are living the longest economic growth cycle in history: last July, we exceeded 10 consecutive years of positive indicators. And there we continue with annual growth close to 2% and repeat the key question at the moment on Wall Street: will we be close to the end of the cycle?

Well, we discussed this issue this week at GloboEconomía with Mel Lagomasino, executive director and managing partner of WE Family Offices. Their reaction was quick: "Business cycles don't die of old age," they die because some kind of catalyst is produced, of any kind, which ends with them.

This catalyst may be a geopolitical crisis, monetary mismanagement or any other circumstance that may be on the horizon today, but which no one dares to predict. Therefore, it is important to be warned, but also not to exaggerate.

The recommendation of Mel Lagomasino for the investor at the moment is primarily to "protect what has been received", and for this it is important to have a "defensive strategy".

Tactics that, Lagomasino says, should be specified in three points. First, maintain more liquidity than usual. On the one hand, he explains, as a precautionary measure, but also because if there is a fall in stock markets, there will be opportunities, and it's good that then we have reserves to buy.

Secondly, it is desirable to improve the quality of all our investments. If they are poorly repaid, questionable investments will suffer more than those with greater consistency.

And thirdly, diversify. Try to have investments in your portfolio that are not too related to each other. This means that if a sector falls, don't lead them all forward because they are too connected. The more independent they are from each other, the better.


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