Anya Schnoor, chief executive officer of Scotia DBG Investments, is recommending persons or businesses to stay as fluid as possible by investing in shorter-term investments and secure instruments to overcome the economic challenges.

Schnoor made the recommendations while addressing a panel discussion on the financial and economic crisis and its impact and implications for employment relations in the Caribbean at the Mona School of Business on Wednesday night at the University of the West Indies at Mona, Kingston.

"The old adage that cash is king is very relevant in this time period," said Schnoor, who is also president of the Jamaica Security Dealers' Association. "Stay in shorter-term investments and secure instruments."

things to shed

Schnoor said persons who have high-interest-rate credit cards and unsecured loans at high interest rates should be thinking of shedding them.

Apart from these expenses, Schnoor is also recommending that persons give up unnecessary wants. "Trim unnecessary expenses - fast food, alcohol, cigarettes. I always tell people those are the things you can get rid of," she said.

The senior vice-president of wealth management at the Scotiabank Group also issued a word of caution for persons who are likely to lose their jobs.

"In an environment where there are possibilities of lay-off, look at the bauxite industry ... . a lot of people don't have any savings. they live kind of day to day and that is something that, personally, you have to change that sort of lifestyle," she pointed out. "I try and encourage people to create a sort of fund over a period of time, three to six months, just in case of anything."

opportunities

Schnoor also cautioned persons against opting for voluntary redundancies as the redundancy package can be depleted quickly.

"This lump sum that you get can be sometimes attractive until you realise that it diminishes over time. This is not the time to be making very serious life changes. You don't know where the economy is going, you don't know where the global economy is going and you don't know how badly Jamaica will be affected," she said.

However, Schnoor pointed out that there are opportunities that can be pursued in the economic downturn and pointed out that many good companies are trading stocks on the Jamaica Stock Exchange below their book value.

"Don't run away from the stock market as it will eventually bounce back. Buy companies with excellent track records, solid fundamentals, high-quality management and potential for growth," she recommended.

dionne.rose@gleanerjm .com