In the wake of one of the greatest shocks to global markets in history, BNP Paribas Asset Management presents its latest expectations for the longer-term returns of most major asset classes.
Much still depends on how well public health and economic authorities deal with the impact of the COVID-19 pandemic and its aftermath.
- So, what are the prospects for the main asset classes over the next five to seven years?
- How should investors deal with even lower interest rates for even longer in developed economies?
- Amid heightened volatility in equities and negative bond yields, where can investors hunt for yield?
We believe investors should continue to build robust portfolios that can withstand negative market developments, but that also deliver sufficient returns over time. This requires:
- Diversification across asset classes, regions and currencies
- Ingenuity in the search for premia and cash flows to enhance returns via, for example, illiquid asset classes.
For our views on the different investment and return opportunities, read
Longer-term asset allocation views: What to expect after the great pandemic of 2020 by Koye Somefun and Daniel Morris
Disclosures
