Part 8/11:

During periods of slowing global growth or potential recessions, defensive sectors like consumer staples often outperform more volatile areas like technology, which require significant cash flow to fund innovation and expansion. Value stocks tend to be less volatile in uncertain times, providing both income and capital stability.

Risks to Consider

Every investment comes with inherent risks. Cash management solutions, primarily government-backed, carry minimal default risk but are susceptible to interest rate changes that can affect their market value if sold prematurely. Fixed income securities, especially corporate bonds, involve default risk, and their prices can fluctuate with duration risk if interest rates rise unexpectedly.