You can incorporate your values into a sustainable investment approach by investing in green bonds, or focusing on gender lens investing. (UBS)

Hosted by Carey Shuffman, Head of the UBS Women's Strategic Client Segment, Shaping your finances during the pandemic shares several considerations that should be top of mind for investors right now. Shuffman was joined by Laura Kane, Head of Thematic Research Americas at UBS, and Ainsley Carbone, Total Wealth Strategist at UBS, to explain how you can create a financial plan that can withstand volatility.


Taking a long-term view

When the market is volatile, it can be tempting to take action, but Kane and Carbone agree that this is not always the best strategy. Kane believes having a long-term view helps people avoid making fear-based decisions. She recommends focusing instead on long-term secular trends, like demographic changes or technology innovation.


Carbone added that there are common behavioral traps investors should avoid, such as loss aversion, or a preference to avoid loss over acquiring gains, because it can lead to a fight-or-flight response. Says Carbone, "If you want to make a change, take a step back and ask if you're financial objectives have changed. If your goals haven't changed, it's unlikely your portfolio needs a change."


Three key trends to follow

Kane believes the COVID-19 pandemic has accelerated a number of secular trends in three key areas.


Digital technology: Social distancing has meant that some daily activities have shifted to the digital realm. Some changes may be temporary while other habits may stick with us for a long time. The increase in online shopping is just one example as customers adjust to this modern-day convenience.


Healthcare: Technology will increasingly influence healthcare through areas like robotic surgery and Artificial Intelligence for diagnostics. Kane says that this will be a far-reaching trend and other growth areas include genetic therapies and oncology.


De-globalization: Companies may shift their supply chains closer to home as result of COVID-19. One area that will benefit from this is automation robotics as factories are moved to more developed countries.


The importance of a liquidity strategy

"When it comes to determining if it's the right plan for your particular situation," Carbone says, "it has to be easy to understand and act as a roadmap to your goals." She added, "It has to be something you can follow in both average and extreme situations." She added that a healthy liquidity strategy will help you meet your day-to-day needs over the next three-to-five years and act as a buffer so you can take on more risk in other areas of your portfolio.


Aligning your investments with your values

"We have the tools available to invest in a better world. Make an effort to incorporate your values into a sustainable investment approach." suggests Kane. You can go about this by analyzing the operations of a company against ESG (environmental, social, and governance) criteria, investing in green bonds, and focusing on gender lens investing, which includes a specific set of criteria related to gender equality.


Listen to the episode Shaping your finances during the pandemic , and visit ubs.com/women for more on how you can take control of your wealth.


Main contributor: Kerry Breen


This article is for informational and educational purposes only and should not be relied upon as investment advice or the basis for making any investment decisions.


Sustainable investing strategies aim to incorporate environmental, social and governance (ESG) considerations into investment process and portfolio construction. Strategies across geographies and styles approach ESG analysis and incorporate the findings in a variety of ways. The returns on portfolios consisting primarily of sustainable investments may be lower or higher than portfolios where ESG factors, exclusions, or other sustainability issues are not considered, and the investment opportunities available to such portfolios may also differ.


UBS Wealth Way is an approach that incorporates three key strategies: Liquidity. Longevity. Legacy. Looking at your wealth in this way can help you explore and pursue your financial goals in the short term, long term or whatever your terms may be. Of course, there are no guarantees that you’ll achieve wealth, or any financial results. All investments have risk, including the potential of losing the whole investment. Talk to your UBS Financial Advisor about your feelings around risk.