London-Based New Capital Link Offers Alternative Metrics for Enhancing Investment Quality In Uncertain Market Conditions
The investment landscape in 2023 is characterized by a high level of uncertainty and market volatility. The COVID-19 pandemic has caused widespread economic disruption, while geopolitical tensions, trade disputes, and rising interest rates have added to the uncertainty.
LONDON, England, April 13, 2023 (Newswire.com) - New Capital Link, a leading alternative investment firm, is empowering investors to enhance profitability and minimize financial risks during uncertain market conditions with the help of alternative metrics for investment quality.
As investors become increasingly anxious due to unpredictable market conditions, the quality of investments has become paramount. According to Rachel Buscall, CEO of New Capital Link, "Investors are keen to identify companies that are well-equipped to navigate through the current market challenges and provide long-term value."
Traditional Metrics for Investment Quality
Investors have used conventional measures such as earnings, dividends, and expansion to evaluate the excellence of an investment. These metrics provide a quantitative estimate of a company's monetary performance and are widely used in investment research.
Alternative Metrics for Investment Quality
As the investment landscape evolves and investors become more concerned about non-financial risks and opportunities, alternative metrics for investment quality are gaining importance. One such set of metrics is ESG, which stands for environmental, social, and governance factors. ESG metrics provide a qualitative measure of a company's performance in areas such as carbon emissions, employee diversity, and board diversity. While ESG metrics have some regulations, such as their subjectivity and lack of comparability across businesses, they also have benefits, such as their capacity to seize non-financial risks.
Impact of Uncertainty on Investment Quality
The high level of uncertainty in the market can have a significant impact on investment quality and traditional metrics. For instance, in an uncertain environment, earnings and growth forecasts may need to be more trustworthy, making it more challenging to consider the quality of an investment based on these metrics. However, ESG factors can help mitigate the impact of uncertainty by providing a more comprehensive view of a company's performance.
The Bottom Line
Investors can safeguard their investments and potentially achieve higher returns when the economy bounces back. With the help of Alternative Investment specialists, such as New Capital Link, investors can make informed decisions about their investments during a recession.
New Capital Link is an award-winning alternative investment firm, NCL is committed to providing its clients with exceptional service and investment opportunities that are tailored to their unique needs.
Source: New Capital Link
