Talking heads – Full valuations make 2022 a challenging year

The set-up for
financial markets is more challenging in 2022, especially for core government
bonds and fully valued equities, given the prospect of higher interest rates.
In our new Talking heads podcast, Maya Bhandari gives her analysis of what this means for asset allocation.  

BNP Paribas Asset Management’s global head of multi-assets
foresees above-trend economic growth with inflation peaking around the summer
and fair, but less heady, corporate earnings growth.

Asset valuations are, however, generally rich in the wake of
the ‘everything rally’ in 2021. Maya discusses how her multi-asset team is
positioning portfolios in this environment.

Formerly known as ‘Market weekly’, our Talking heads brings investors the in-depth insights on topics that
really matter to them, analysis of the world and markets through the lens of
sustainability and more great conversations with investment experts.

Listen to the Talking heads podcast with Maya Bhandari, global head of multi-assets

Any views expressed here are those of the author as of the date of publication, are based on available information, and are subject to change without notice. Individual portfolio management teams may hold different views and may take different investment decisions for different clients. The views expressed in this podcast do not in any way constitute investment advice.

The value of
investments and the income they generate may go down as well as up and it is
possible that investors will not recover their initial outlay. Past performance
is no guarantee for future returns.

Investing in emerging
markets, or specialised or restricted sectors is likely to be subject to a
higher-than-average volatility due to a high degree of concentration, greater
uncertainty because less information is available, there is less liquidity or
due to greater sensitivity to changes in market conditions (social, political
and economic conditions).

Some emerging markets offer less security than the majority of international developed markets. For this reason, services for portfolio transactions, liquidation and conservation on behalf of funds invested in emerging markets may carry greater risk.

Writen by Maya Bhandari. The post Talking heads – Full valuations make 2022 a challenging year appeared first on Investors’ Corner – The official blog of BNP Paribas Asset Management, the sustainable investor for a changing world.

inflation
markets
interest rates

Author: Maya Bhandari