Current macroeconomic trends buttress the drive towards sustainability.
Nine out of ten investors in Hong Kong said they intend to make changes to their investment strategies, according to a study by Schroders.
Investors should be prudent and reduce risk given that central banks will likely turn dovish soon.
Sceptics warn better-than-expected numbers do not reflect inflationary pressures.
In trying to navigate uncertainty over both inflation and growth, Schroders believes a diversified portfolio is the best approach for the coming months.
The coming quarter could be pivotal in determining the trajectory for markets and economies over the next few years, with Fidelity International expecting the start of a ‘great reset’.
Investors can weather high inflation and slower growth via selective Asian credits as well as equities in areas like sustainability and innovation, says Manulife Investment Management (Manulife IM).
China’s zero-Covid policy, rising commodity prices and a resurgent service sector are three reasons why Schroders believes inflation is here to stay for the time being.
Emerging market currencies, green energy and real estate provide attractively-priced inflation hedges to make portfolios more resilient, according to Pimco.
Those looking to outsmart inflation might want to avoid this volatile asset class.