WITH oil prices climbing and supply risks linked to the Strait of Hormuz beginning to filter into local markets, everyday investors are being advised to hold on to cash and take a broader view of the market, as higher fuel costs feed into everything from consumer goods to interest rates.

“Oil is at the centre of everything we do,” said Chrisloy Robinson, chief revenue officer at Proven Wealth, in an interview with the Jamaica Observer.

He explained that rising fuel costs are expected to have a wide-reaching impact on shipping, electricity and production, ultimately feeding into higher prices across the economy. From an investment standpoint, the developments raise concerns about increased inflation locally, as well as potential implications for interest rates.

In February, the Bank of Jamaica (BOJ) reduced its policy rate by 25 basis points, while the Federal Reserve — the US central bank — maintained its rates, in line with expectations coming out of last year. Despite this, interest rates remain relatively elevated, and with uncertainty persisting in the market, Robinson is advising investors to maintain liquidity.

“As investors you may want to maintain some liquidity,” he advised. “With interest rates still high, investors can earn attractive returns on money market instruments while preserving flexibility.”

He pointed to short-term instruments such as 30-day certificates of deposit (CDs), currently yielding between 5.7 and 5.8 per cent, along with treasury bills and money market funds, as options for investors seeking attractive returns without taking on excessive risk. He also pointed to the fixed-income market, which presents opportunities to lock in higher rates, but cautioned that investors should carefully consider the duration of their investments.

“We are in uncertain times, and investors may not want to be locked into long-term positions,” he warned.

As for the stock market, with oil prices climbing, some investors may look to oil and gas stocks, but the view was that chasing these as short-term plays may not be the best approach.

“It’s not just oil companies. Because of how volatile the price is now, I wouldn’t necessarily suggest looking at it [oil and gas stocks] as a short-term play,” he told the Business Observer. “A medium- to long-term approach is more appropriate, alongside exposure to other sectors that may be affected by rising costs.”

Instead, attention was directed to sectors that stand to benefit or remain resilient in a higher-cost environment. For example, blue-chip manufacturing companies such as Seprod and Wisynco were among the names highlighted, seen as firms likely to hold their ground and potentially grow revenues despite rising costs.

Consumer goods companies were also identified as a key area to watch, given their exposure to higher input costs and the likelihood of price adjustments. That view is already being reflected in the market, with Seprod CEO Richard Pandohie recently indicating that food prices could increase between two and eight per cent amid current global conditions.

From Proven’s recommendations, Carreras was highlighted for its consistent dividend payouts, along with TransJamaican Highway and Scotia Group Jamaica, based on projections from the firm’s team.

On the international front, while the market offers a wide range of options, investors are being encouraged to take a similar approach to international oil and gas companies with a long-term view, given the volatility in prices.

Alternative assets such as gold and silver may also be considered, alongside diversified options like exchange-traded funds (ETFs) across sectors including technology, consumer goods, and the financial sector listed on the US stock market, including the Nasdaq.

Ultimately, investment decisions should be guided by each investor’s objectives, goals, and risk tolerance. However, Robinson noted that in the current environment, maintaining liquidity remains a key strategy, particularly as investors can take advantage of relatively high interest rates.

As of April 2026, the BOJ holds its benchmark policy interest rate at 5.5 per cent, aimed at keeping inflation within its four to six per cent target range.

ROBINSON…now is a good time to get paid and maintain that liquidity. Because interest rates are high, you can still get attractive returns on money market instruments.