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Should Investors Heed the IMF Warning?

The International Monetary Fund is famous for many things, one of which is the organization's projections for global growth.

The IMF updates its projections over time, factoring in global economic changes and macroeconomic drivers over time.

Earlier this year, the IMF released a report which confirmed many of the fears investors evidenced in a late-2018 selloff which saw some indices drop into a bear market - growth is slowing, and is expected to continue to slow.

The primary concern, however, is not simply that growth is slowing, but rather the speed at which global growth is expected to contract over the next two years.

Risks related to Chinese growth estimates and the sustainability of global demand in the context of ongoing tariff disputes remains front and center as key headwinds for the global economy.

The U.S. government shutdown has highlighted issues with elevated levels of government debt around the world, and separatist movements in Europe have also dampened the mood for many.

For the "Average Joe" investor, attempting to put these concerns into perspective is of utmost importance. Picking and choosing niche companies operating in industries that provide high margins and have relatively low levels of competition are fine - choosing global growth portfolios or companies relying on operations spanning the international spectrum may continue to be hit harder.

As always, ensure your portfolio is well diversified and consider all investment angles before making investment decisions.

Invest wisely, my friends.