‘Real assets remain the safest bet’

FIRST Mutual Wealth (FMW) says investors should continue to lean towards real assets as inflationary pressures have not yet entirely subsided.
Investors in Zimbabwe have cultivated a lot of bias for real assets such as stocks and property, amid high inflation, which peaked at 837,58 percent last July. And while the economy has seen some stability since the Reserve Bank of Zimbabwe introduced weekly currency auctions last June, inflation remains high at 241 percent for March.
“We recommend maintaining a bias towards investment in real assets, namely listed equity markets and alternative investments that can earn real returns,” FMW said last week in a note.

“The property sector remains attractive but only for long term investors while money market investments need to remain at the short-end while ensuring the yield is from high yielding paper that can minimise the losses from inflation uncertainty.”
The wealth management firm said if the stability of the foreign exchange markets prevails, a sustained recovery of the general economy will ensue, even though “the Covid-19 pandemic remains a key downside risk in the outl