Investors are being encouraged to remain optimistic about Jamaica’s economic and market prospects following the devastation caused by Hurricane Melissa. Despite the scale of the damage, VM Wealth Management says the country’s strong macroeconomic fundamentals remain intact, and the long-term outlook for capital markets continues to be positive.

During a recent VM Wealth webinar on the economic implications of the hurricane, economist Dr Damien King explained that the impact of Melissa, while severe, should be understood as a temporary interruption rather than a structural shift. He noted that the absence of panic-selling on the Jamaica Stock Exchange is one of the clearest signals that investors are taking a long-term view of the economy.

According to Dr King, the stock market’s behaviour reflects confidence in Jamaica’s future: “People who are invested in equities tend to understand the nature of markets, and they may be correctly viewing Melissa as an episodic event. They may be thinking that the fundamentals of the economy have not changed [significantly], so there is no reason to panic about the long-term prospects.”

He added that the stock market is inherently forward-looking, pricing in expected earnings rather than current physical damage. “The stability in stock prices is essentially saying: I’m not pessimistic about the long-run future of business and economic growth.”

Dr King emphasised that Jamaica enters this recovery period with one of the strongest macroeconomic foundations in its modern history. He described the country’s fiscal and monetary management over the past decade as “literally world-class,” referencing low and predictable inflation, historically high international reserves, and a public debt-to-GDP ratio that has fallen from 145 per cent to near 60 per cent. These achievements, he explained, give Jamaica the capacity to recover more quickly and maintain credibility with international partners and investors. “We still have a solid macroeconomic foundation. That is what the hurricane has not destroyed, and it is why the long term still looks good,” he said.

As rebuilding efforts begin, Dr King also noted several areas that will provide emerging opportunities, noting that the construction sector will play a central role in the country’s productive recovery. He further added that real estate is expected to appreciate as the economy regains momentum, especially in a context of long-term growth. The financial sector will also remain an important driver of economic expansion, as demand for financing tends to rise in tandem with reconstruction and growth, he said.

During the discussion, Denise Marshall Miller, Assistant Vice President for Global Markets and Digital Asset Trading at VM Wealth, encouraged investors to reassess their portfolios with care and to ensure that their strategies are appropriate for the evolving environment. She underscored the value of long-term planning and alignment with personal risk levels. “It is very important to look at your investment strategy in the context of the environment you are in,” she said. “Periods like this also present opportunities, and what matters is understanding which side of the trade you are on.”

Marshall Miller added that while the short term may feel uncertain, disciplined investors who remain focused on long-term goals are best positioned to benefit from the economy’s eventual rebound.

VM Wealth Management is encouraging clients to speak with their wealth advisors to review their portfolios, clarify their risk appetite and investment horizon, and identify opportunities that align with the country’s recovery and long-term growth path.