Investment strategist Guy Monson is advising islanders to stick with companies with a strong balance sheet. (Picture by Daniel Guerin, 0550233)

INVESTORS should think globally rather than run for cover in the face of an economic slowdown, according to one expert. Sarasin Bank managing partner and chief investment officer Guy Monson was advising islanders at a seminar.

He said quality global blue-chip equities with the strongest balance sheets were the best course of action at the moment. ‘Falling US house prices have undermined the banking system so expect more interest rate cuts and prepare yourself for the inflation consequences, as experienced in Guernsey already by rising food and energy costs.

‘The solution is not to run to the bank and place everything into deposits and bonds as, by doing this, you might actually do more damage than good. The smartest thing would be to buy into the best global companies at today’s extremely compelling valuations, for their balance sheet strength and their ability to grow dividends in line with inflation.’