Here’s how to invest to stay profitable even though the ROC is in recession

JAKARTA, KOMPAS.com – A recession is looming. Finance Minister Sri Mulyani Indrawati projected that economic growth in the third quarter of 2020 will again register a contraction of -2.9 percent.

But take it easy. The weakening economy does not mean that your finances are also weak. There are ways to keep your pockets safe during a recession.

One thing you can do is invest. It is not just any investment, there are several investment instruments that are still fresh in these difficult times.

Also read: Before the recession, is there still an investment in the global market?

Mandiri Investment Management Chairman and Director Alvin Pattisahusiwa said this is a good time to increase your investment. The economic recession can be an opportunity to make more profit than in normal times.

“I think if there is a recession, this is not something that will make us stop investing. Actually, during this recession, we have the opportunity to invest in stocks at prices that are quite cheap compared to prices under normal conditions,” he said Alvin in a statement. virtual debate, Wednesday (9/23/2020).

To get the maximum benefit, Alvin advises you to diversify your portfolio, so that you can reduce the risk of losing too much.

That means you should put your money not only in stocks, but also in mutual funds, gold, or bonds.

Investing in the global market can also be the right option to diversify assets, as it benefits from the macro side and the different exchange rates in the destination country.

“We must carry out the principles of diversification, in the sense that we have rupee side pockets, we have cash pockets coin others can buy investment products that use US dollars, “said Alvin.

Also read: Recession is coming, check out Warren Buffett’s advice on investing in tough times

Meanwhile, added Mus Hidayat, head of Unit Trust and Treasures Private Client Products, PT Bank DBS Indonesia, investment should be directed to sectors that are still performing well during the pandemic.

Several sectors that still exist during the pandemic include information technology, the consumer sector, the health sector, and the telecommunications sector.

“If you look at it, not all sectors have experienced a sharp decline. There are several sectors that are doing well. If you want to invest, you should be able to look at this (sector), to deal with market volatility that may occur in the future,” concluded.