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Bonds, stocks and alternatives: M & G’s scenarios for 2022


Between the volatility generated by the pandemic they stimuli financial unprecedented in the past two years investors they’ve had their work cut out to navigate equities, bonds and alterative assets.

During the round table organized by M&G in recent days, we talked about what has happened in recent months, to understand what the situation will be and to adopt the right countermeasures in investments.

Bonds, troubled times

The investments to Income Amount fixed are those most suffering at this stage. In a context such as the current one, “theinflation it is the enemy of fixed income investors ”, explained Jim Leviss CIO of public fixed income at M & G, for whom central banks’ interventions to contain inflationary pressure are desirable as long as, he stresses, they take place gradually. In this context, “only i floating rate securities they seem to be a refuge against inflation ”, highlighted the expert.

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Equity, the view is positive

Different speech for the actions. “From the point of view of market equity – he began Fabiana Fedeli, chief investment officer equities and multi-asset of M & G – among the key variables to monitor there is not only inflation but rather regulation. The authorities are increasingly looking to companies with the aim of protecting the consumer “.
But if in the past the focus was mainly on the control of competition and prices, now instead “the perspective is broader and concerns numerous variables that include privacy, social benefits, equality”.
Concluding that “as long as this situation persists, and at the moment it seems to be the case, we are constructive on equities”.

Alternatives, useful for diversifying

Finally, after stocks and bonds, the asset alternative, which offer important opportunities for the diversification. These include in particular those instruments – equity or credit – not listed on regulated markets.
“I believe that private markets will continue to be attractive to long-term investors, who will be able to use technology, adapt to complexity, innovate in evolving markets and be agile in addressing new opportunities,” he explained. William Nicoll, M&G chief investment officer of Private and Alternative Assets.

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