2022 has delivered a blunt reality check to investors. After a massive rally in 2020 and 2021, the S&P 500 is already down 10% in 2022. According to Peter Schiff, CEO and chief global strategist at Euro Pacific Capital, the worst is yet to come for investors. The US stocks that most people own are the ones that are going to go down the most, most commentators believe. Those are the overpriced momentum-type tech stocks that everybody owns. The argument goes that those kinds of stocks were inflated during the bubble and are going to collapse as the air comes out of that bubble. On a positive note, there are several ideas on how investors can prepare for a seemingly inevitable downturn. Instead of chasing the exciting high momentum tech names, experts suggest looking at recession-proof businesses, especially if they pay reliable passive income to investors. As such investors should consider assets that sell products and services that consumers have to buy, not just what they want to buy. The reason is simple: With rampant inflation, the products that consumers need will become so expensive that they won’t have money left to buy the stuff they want.

Past performance is not a reliable guide to the future. The value of investments and the income from them can go down as well as up. The value of tax reliefs depend upon individual circumstances and tax rules may change. The FCA does not regulate tax advice. This newsletter is provided strictly for general consideration only and is based on our understanding of law and HM Revenue & Customs practice as of May 2022 and the contents of the Finance Bill. No action must be taken or refrained from based on its contents alone. Accordingly, no responsibility can be assumed for any loss occasioned in connection with the content hereof and any such action or inaction. Professional advice is necessary for every case.