For the Investment Outlook for the second half of 2022, LGT experts provide an overview of economic trends and their impact on various asset classes in a series of four videos.
A commentary on the video above: “Persistently high inflationary pressures leave central banks in Western countries no option but to raise interest rates quickly and substantially, despite the fact that global economic growth is starting to weaken. This extraordinary constellation will pose multiple challenges for investors in the coming months.”
“Tighter monetary policy coupled with slowing growth momentum is creating uncertainty and putting downward pressure on equity valuations. We favor three different strategies, namely defensive, dividends and growth – and combine these with fundamentally attractive valuations.”
“In the current environment, when it comes to bonds, we are on the one hand focusing on corporate bonds, which have taken advantage of the period of low interest rates to strengthen their balance sheet, as well as to extend their maturity profile. On the other hand, we are focusing on government bonds for hedging purposes.”
“When it comes to sustainable investments, investors have to date focused heavily on top-tier companies. Even greater positive change can be achieved with companies that still have catch-up potential in terms of their ESG profile. Targeted ‘engagement’ creates potential for revaluations and results in positive change for all stakeholders: the companies themselves, their employees, society, the environment and investors.”