A billionaire explains how to invest his wealth as the global economy crashes

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In a direct response to a question about his investment strategy in light of the turmoil of global financial markets in conjunction with the outbreak of the Corona virus, billionaire Mark Coban replied that he had turned to cash.

It seems that the multi-directional American investor believes that keeping liquidity in his possession during this period will be the safest option in light of the volatility of the value of investments and concerns regarding the future. “I still think the market downtrend is not over,” says Coban.

According to a report For the site “Business Insider”, the expectations of Copan are in line with billionaire Jeffrey Gundlash, known as “the king of bonds”, who last month warned of a sharp stock market decline in April, exceeding the huge losses that it has already recorded in the past months.

Although Copan expects a short-term decline, this does not mean that it is downright pessimistic about the long-term growth prospects in the United States. “Three or five years from now, the market will be bullish than it is today,” he says.

He adds: “When we look back over the past ten years, we find that there are some amazing companies that have been created, and to maintain cash, that will give me an opportunity to invest in them.”

For this reason, the Copan approach to Stock markets It is based on a strategy known as “tight wait and wait for cash”. He is now building his cash inventory so that he can distribute it to entrepreneurs and companies that will successfully and cohesively overcome the crisis.

Coban believes that in the chaotic state of global supply chains, and with manufacturing activity expected to recover in the United States, there will be a rise in consumer prices (inflation), and therefore he believes that consumer goods companies will benefit greatly from the current environment.

Copan also sees real estate opportunities for those willing to take risks. He said, “I try to be utilitarian and smart. I just think there will be a lot of reconfiguration. So companies started buying lands, buildings and shopping malls.”

“In big dense cities, like New York, you start to see apartment prices fall sharply, so if you think you want to live there, it’s time to buy. If you think you want a house in a severely damaged area, it’s time to buy.”

According For an index “Bloomberg” for billionaires, the wealth of Copan, the owner of a basketball club and producer and early technology investor, is about $ 4 billion, and the bulk of it consists of cash.

The International Monetary Fund believes that this year the global economy is experiencing its worst recession since the Great Depression, as emerging markets and low-income countries in Africa, Latin America and Asia are exposed to high risks.

The epidemic that spread from the Chinese city of Wuhan to nearly every corner of the world shut down businesses and lost millions of jobs. Indicate Fund expectations To a partial recovery in the global economy in 2021 if the epidemic fades in the second half of this year.

Veteran financial market analyst Stephen Isaacs believes that global financial markets face their worst crises since 1929, when the Great Depression that caused severe losses to the global economy erupted, coinciding with the decline of senior economists and their prediction as a global recession.





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