Prepping portfolios for next market storm? Not just gold and government bonds

  • 📰 ChannelNewsAsia
  • ⏱ Reading Time:
  • 34 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 17%
  • Publisher: 66%

South Africa News News

South Africa South Africa Latest News,South Africa South Africa Headlines

LONDON: G7 government bonds? Check. Gold? Check. But that may not be enough as the coronavirus crisis accelerates a hunt for a wider pool of ...

LONDON: G7 government bonds? Check. Gold? Check. But that may not be enough as the coronavirus crisis accelerates a hunt for a wider pool of assets to better balance investment portfolios during stressful times.

Compare that to Bunds' 10 per cent price rally during the worst of the 2011 euro debt crisis between end-May and early-August."We do have a sense that things are shifting," said Wouter Sturkenboom, who helps to formulate investment strategy for US$350 billion in client assets at Northern Trust Asset Management.

The traditional multi-asset strategy - an equity-dominated portfolio alongside a big dollop of government bonds - appeared to function less well this year than during past crises. In Europe too, US$2.4 trillion of top-rated credit is eligible for European Central Bank purchases - on top of US$8 trillion in government debt.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 6. in ZA

South Africa South Africa Latest News, South Africa South Africa Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Emerging market corporate credit quality down but not outThe coronavirus pandemic has had a devastating impact on companies around the world, but in poorer emerging economies where balance sheets and ... Not yet...
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »