Expert Tips: Roger Scott (WealthPress) Shares How To Weather Uncertain Financial Times
There are a lot of downturns around the globe these days, and they are causing a lot of financial uncertainties. We are fearful about the effects of war, rising inflation, higher interest rates, and an impending recession.
All of this ambiguity causes financial stress. Luckily, Roger Scott, the head trader at WealthPress, is here to advise us on the aspects of our finances that we can manage. Because we never know what can happen, preparing for the unexpected is a good strategy to reduce financial anxiety.
Roger Scott’s expertise as an expert trader and commodity broker at WealthPress has allowed him to establish top-notch trading skills and strategies, some of which he will be sharing with us.
From your pool of knowledge and experience, what impacts do you think uncertain financial times have on businesses?
Uncertainties, especially in finance, bring with them lots of new unknowns. While some businesses might survive, many others fail. Many business owners would be saddled with questions such as what new goods/services should be provided? What should be invested in, and where should it be invested?
What new markets should be explored? This ability to answer these questions correctly would go a long way to relieving the impact of the sudden financial crises.
You have been a finance expert for many years now; what strategies have you used to handle uncertain financial situations?
Over the years, I have come to realize that uncertainty is a major part of the business. And in order to survive, you have to devise a survival strategy and make necessary adjustments to your business. From experience, I have developed trusted strategies that always help me.
Periodically, I assess my net worth to be aware of the figures. Knowing my assets and liabilities are both important as this assists me in figuring out whether I need to pay off debt or save more money.
Also, I spread my investment across several platforms. In this way, if a particular investment is badly affected, I fall back on the others.
Additionally, I always try to have a contingency plan handy.
What common errors do you see business owners making these days that could result in an unpredictable financial predicament?
Covid has impacted the global markets, and many business owners are quick to make and hop on new decisions and ideas, even without test running them. This can result in drastic consequences, significantly if the plans don’t fall through.
Other times, they try to cut costs in production. Although cost reduction may be important in ensuring efficiency, it should be done with caution as it has the potential to degrade output quality. This would, consequently, impair customer satisfaction and unexpected low yield.
As a financial expert, do you predict financial downturns, or are you constantly surprised?
I always foresee financial crises years or months ahead of the situation in itself. There are always indicators, either in new policies, war, economic recessions, and so on, that indicates danger is looming.
Hence, most of the time, financial downturns don’t take me by surprise. It is just a matter of navigating and investing in a challenging market.
Economic recessions usually mean businesses would lose money. How can traders develop and utilize the aforementioned strategies to recoup their losses?
While talking about my strategies, I mentioned having a contingency plan. If you are an investor in the stock market, for instance, you should be able to have a backup plan should things go south.
Secondly, long-term projections should be adopted as they can mitigate against losses. You can have an elaborate five-year or more plan ahead. That way, you would not be taken by surprise during fluctuating business times.