Strategy: minimize losses

Strategy: minimize losses

The confusion that is taking hold in the world, triggered by recent American initiatives, is bringing uncertainty to decisions, including in the energy sector.

If until now the motivation was to maximize gains, perhaps we are in a much more cautious phase, in which minimizing losses has become "central".

I will make an analogy with the financial market. Investing in stocks has become extremely risky. Losses have been significant. The market is already talking about a "correction".

The diametrically opposite alternative is to invest in fixed income. "Betting" is increasingly challenging. Relying on "safe havens" is much more "plausible" given the current global situation.

But, at the end of the day, it is up to the decision of senior executives and boards of directors to indicate the model they prefer. The rest is even simple, comparatively!