These are not easiest of times for investors, especially with investment returns at all-time lows, political and social turmoil disrupting key economic regions, and the constant threat of inflation looming. Regardless of the obstacles threatening global markets, private investors and asset managers from across the globe are discovering ways to make the challenges in today’s markets work in their favor, rather than against them.
to combat the disappointing returns and risks from traditional assets
in a portfolio, an investor's strategy often begins with a focus on
yield, and then works it way backward from there. In applying this
approach, the portfolio's holdings are chosen because they will perform
well and deliver strong and steady returns
(of 8 percent to 13 percent per annum), no matter how the other asset
classes or international markets perform. This type of long-term
security has become increasingly important to investment-seekers
everywhere, regardless of their demographic.
"Yield is at the root of every decision that we make in our portfolio, [whether it’s] buying stocks or doing asset allocations."- a Multi-Asset Product Manager at Schroders
investors know that the proper alternative asset allocation can
substantially increase the value of a portfolio. This is especially true
when you stop to consider that, aside from the common investment risks,
markets can at times be incorrectly priced; particularly in instances
where investor joy and euphoria has pushed values too high, or investor
fear has (in contrast) pushed values down to extremely low levels. As
most investors are aware, this is an all-too-common occurrence on Wall
Street, where stocks prices are sometimes subject to unexpected
influence and/or intentional manipulation.
With a focus on
investing for the best return, investors are choosing investment options
that are hardly influenced by politics or by the performance of
investments in traditional markets. In fact, a rising number are investing in the hard assets
that drive economic growth in emerging and developed nations around the
world. Aside from providing a strong yield, these investments also
provide security against crashing stock markets and rising inflation.