Home Capital Investing strategies

Recession comes: How can a dividend strategy help mitigate the investment risk?

Ross McSkimming
Ross McSkimming10/6/2022 02:28 PM GMT+08  • 4 min read
Recession comes: How can a dividend strategy help mitigate the investment risk?
High dividend stocks tend to do better in high inflation environments / Photo: Shutterstock
Font Resizer
Share to WhatsappShare to FacebookShare to LinkedInMore Share
Scroll to top
Follow us on Facebook and join our Telegram channel for the latest updates.

It is definitely a difficult time for the global economy in the first half of 2022. Most asset classes are down year to date, some by quite a lot, and even within some of the bright spots, such as commodities, some of these areas are also down year to date.

In most economies, inflation is very high. Not just headline rates, not just because energy and food price inflation is high, but across the board. The consensus that existed during last year that a lot of this inflation would prove transitory has evaporated very quickly. And central banks have quickly got the message that they have to act quickly and aggressively to rein in inflation.

When underlying inflation is very high and labour markets are extremely tight, demand has to be destroyed one way or another to bring inflation under control. So in our view, recessions is likely to occur across the major economies within the next two years.

×
Loading next article...
The Edge Singapore
Download The Edge Singapore App
Google playApple store play
Keep updated
Follow our social media
Subscribe to The Edge Singapore
Get credible investing ideas from our in-depth stock analysis, interviews with key executives, corporate movements coverage and their impact on the market.
© 2022 The Edge Publishing Pte Ltd. All rights reserved.