Current fiscal and monetary policies are taking the world down a necessary, but dangerous path, according to co-CIO of Bridgewater Greg Jensen. He told investors asset allocations should focus on diversification, and assets that benefit from fiscal and monetary policy moving together.
Two ex-central bankers, Randy Kroszner and Lucrezia Reichlin, said that central banks were doing everything they could to ensure markets continue to function. They said inflation was unlikely.
Former Treasury Secretary, Larry Summers, questioned the successful functioning of US democracy and America’s continued ability to “lead the world”.
For some investors, plunging equity valuations in March were an opportunity to ‘get back in’ at reasonable prices. More recently the rapid recovery has been a cause to position conservatively once again.
FIS 2020 will discuss how the unprecedented government stimulus in response to the pandemic could affect investor returns and specific allocations. Areas of concern include a sharp rise in zombie companies kept afloat by government support.
Given the disruption and chaos currently facing the world, society and economies, this session looks at what an imagined future would look like.
Top1000funds.com is the market leading news and analysis site for the world’s largest institutional investors. It focuses on leading the global investment industry to continuous improvement through case studies of best practice in governance and decision making, portfolio construction and efficient portfolio management, fees and costs, and sustainable investing.
The publication pushes the industry to question whether status quo processes and behaviours to tackle risks and opportunities will be sufficient in the future, and actively campaigns for diversity, sustainability, transparency, innovation and better alignment of fees in the investment industry.
Top1000funds.com is read by investment professionals in more than 40 countries.
