Nine financial experts reveal how they’re protecting their OWN money in case of

As fears of a stock market meltdown continue to loom large, it can be hard to decide what to do with your money to keep it safe.

Growing numbers of financial experts, from the Bank of England to the International Monetary Fund, are warning that there could be turbulence on the horizon, as a result of elevated levels of global debt, a bubble forming in artificial intelligence (AI) company shares and debt defaults among riskier lenders.

While experts always advise sticking to a long-term strategy and ignoring the urge to panic sell, the idea of the value of your carefully considered savings taking a hit can be difficult to stomach.

Diversification is key at times of turmoil. Spreading risk across different assets, sectors and regions should provide some protection because they are unlikely to all nosedive at the same time.

Maintaining your regular investment plan is also wise. It is virtually impossible to predict the top or bottom of the market, so investing a little and often ensures you’re not putting all of your money into the market just before a fall – and are investing when prices have fallen and the market is at its cheapest as well.

But all of this is easier said than done. So how are professional investors approaching the situation? We asked top fund managers and investment experts what they are doing with their own portfolios.

Judith MacKenzie, head of Downing fund managers

Judith MacKenzie wants to avoid having too much of her money in the US

I am cautious on the current outlook for markets, and know there is a bubble about to burst. Just don’t ask me when.

Mostly I invest in funds and investment trusts, and because my own specialism is in UK smaller companies I tend to invest there too. I currently hold the Oryx International Growth fund, which focuses on companies of this size.

I also want to spread my money across other geographies and sectors, but want to avoid having too much of my money in the US so have left the Magnificent Seven [the name given to the biggest tech stocks including Amazon, Apple and Meta] investment party early.

I have nudged my niece and nephew towards the Spyglass US Growth fund, which focuses on smaller American companies. It will be a volatile fund, but because they are younger they can wait out the ups and downs. It is a long-term holding to sit alongside more sensible stuff in a portfolio.

Abby Glennie, co-manager, Abrdn UK Smaller Companies Growth Trust

Abby Glennie has put more money into fixed-rate savings bonds over the past couple of years

For me, the stock market has always been the obvious place to park my savings because the interest rates on cash savings accounts tend to feel uninspiring. However, I have put more money into fixed-rate savings bonds over the past couple of years as interest rates have been higher.

This also gives me some balance away from the stock market.

Recently, diversification –spreading my money across different types of investment – is something I’ve been spending more time considering.

I have been giving more thought to whether there will be a stock market crash.

As a result, I’ve started to sell some of my investments in big US companies.

I think that smaller companies in the UK and Europe look like better value right now.

The question is what to do with the money I have freed up from selling my US investments.

Given how good gold has been, I have looked at that, but after its recent run [up about 50 per cent over a year], I’m thinking I’ll park it either in cash or a bond fund, and reinvest in the stock market at some point in the future when things have settled down.

David Roberts, head of fixed income at Nedgroup Investments

David Roberts invests in high-quality corporate bonds and some UK government bonds

In uncertain markets it is crucial to know the difference between investment and speculation. I want investments that can be analysed, whose earnings can be calculated, and whose potential downside can be predicted. That’s why I don’t invest in cryptocurrencies such as Bitcoin.

How one invests should depend on personal circumstance: age and life stage, so to speak. I’m in my 50s, no mortgage, empty nest, so I need to concentrate on protecting my wealth rather than growing it.

Because of that I invest in high-quality corporate bonds [debt issued by strong companies], which pay interest of 4-5 per cent. I also own some UK government bonds, known as gilts.

If you hold these directly, any gains you make are tax-free. Would I suggest a similar strategy to a 25-year-old? Absolutely not.

I find investing in shares horribly dull. I owned Compass, the food services group, for five years and it is up about 700 per cent. I also own Lloyds Bank, which is up 50 per cent year to date.

Jane Sydenham, Rathbones investment director