Navigating volatility and the future of finance with insights from amana

With heightened volatility, shifting monetary cycles and rapid technological disruption, investors are increasingly searching for clarity and conviction. Muhammad Rasoul, CEO of amana, offers a grounded and candid perspective on how individuals can navigate today’s complex financial environment – emphasising discipline, long-term thinking and the importance of self-awareness.

Reflecting on the turbulence that has become a hallmark of the global economy, Rasoul believes investors must begin with an honest appraisal of their own circumstances. “I think that investors need to be honest with themselves about what their time horizon is for their investments,” says Rasoul. “If they do that and then work on a solid construction of a diversified portfolio, it will make it easier to manage their own emotions through volatility.” He warns that mismatched timelines and short-term pressures remain a major risk. “If they are not, and then put capital at risk when they have short-term needs for it, they are going to end up with a lot of challenges and potentially a world of hurt financially, as they will not be able to manage through volatility.”

Gold, Bitcoin, and the role of defensive assets

With gold near historic highs, its purpose in a modern portfolio remains a topic of debate. Rasoul is unequivocal in his view of its long-term value. “I think you have to look at gold as a hedge against inflation. If that is the basis, then the price does not matter, as gold has shown to track inflation over time and outperform it.”

He emphasises that gold’s role is not to generate outsized returns but to stabilise a portfolio. “That means it is not the source of total return, but rather a balancing effect on your other assets based in deflationary currencies like the USD,” adds Rasoul.

Rasoul draws parallels between gold and digital assets. “The same concept can be applied to BTC as well. Many investors make the mistake of trading and investing in gold as a single investment, as if it were a stock, and it is not that. It’s much, much more.”

Technology remains the long-term constant

Despite macroeconomic uncertainty, Rasoul sees one clear driver of future growth. “One thing is for sure in my mind: technology will continue to evolve and become more and more a part of our lives,” observes Rasoul. “As such, investing in the global technology sector, to me, is the only relatively low-risk strategy—provided, of course, your time horizon is beyond 5 years for any capital invested in those markets.”

When it comes to managing risk in equity markets, he notes simply: “I think both Gold and BTC can have a role in this.”

Rasoul’s view on digital assets is both realistic and optimistic. “Digital assets as an entire asset class are extremely risky. I would agree with that, and the vast majority of them don’t have any place in an investment portfolio unless they represent the high-risk segment of a person’s diversified investment portfolio, with that portfolio having a minimum time horizon of 5 years.”

Yet he sees a clear purpose for them for the right type of investor. “If that is the case, then I think they are very valuable and a way for someone to amplify overall portfolio returns and also help account for the impact of inflation,” notes Rasoul.

Rasoul is convinced that the real revolution lies in blockchain’s application to real-world assets, especially in the future. “I think that the tokenization of real-world assets is very clearly the end game for the financial markets, with DLT/blockchain being the building blocks for this.”

He predicts a swift evolution: “If I had to guess, I would say that 5 years from now we will be seeing massive acceleration in this direction, and 10 years from now the lion’s share of sophisticated markets will be finalizing their evolution into this paradigm.”

Building a resilient portfolio

For Rasoul, constructing a portfolio begins long before the first trade. “Before building any portfolio—and this is the most boring part—you have to have some sense of financial security. If you don’t have emergency savings or are over-laden with debt, you will have a hard time doing it right.”

He outlines a sequence that many investors overlook. “Once you get your debt down or altogether gone, and have a good 6 months of emergency funds, then you are ready to start constructing your investment strategy,” says Rasoul.

Time horizon, he stresses, is critical. “A portfolio to be invested over the next 5 years is much different from one for 20. So you need to think about your timeline, how much you can contribute, and how you are going to manage your wants and desires in the real world—because you’re going to want things.”

When asked for a simple allocation framework, Rasoul defers: “This is something that depends on each person.”

Liquidity and rebalancing, however, are non-negotiable. “Super important. Liquidity is critical as something to think through, and every year you should be doing the rebalancing.” But self-reflection remains even more essential. “More important is the frank talk with yourself about whether the initial portfolio still works with your goals and objectives,” adds Rasoul.

The power of knowledge and user-focused platforms

At amana, investor empowerment comes down to two things: education and cost transparency. “Knowledge and cost,” says Rasoul. “I wish more people actually put in the work to educate themselves, and I wish more people actually did the research to see how much they are paying to trade and/or invest in the markets.”

He argues that awareness alone could significantly boost performance: “If people did that, I think it would lead to an additional 2–5% per annum in alpha on their portfolios.”

For active investors, he says no magic tool guarantees success. “This is really about psychology.”

But he highlights what sets amana’s platform apart. “amana is unique because it was built by people with nearly 30 years of practical, hard-earned experience—real teeth-grinding as traders and investors who understand the frustrations and gaps in traditional platforms,” says Rasoul.

“It was created to strip away that complexity and give people an all-in-one, intuitive, super easy-to-use experience that brings together everything an active investor needs in one place.”

Long-term focus above all

If Rasoul were to offer one piece of parting wisdom, it would be about patience and rationality. “The amount of time you are invested in your investment is going to be the biggest factor in your success with that investment. Do not pay too much attention to what happens in the short term.”

He underscores the importance of thoughtful preparation. “Pay attention to the work you needed to do before you got into the investment to make sure it was done using your God-given gift of reason, and not some FOMO attitude about participating in the markets.”