Please see below latest input from Legal & General’s Investment Managers Asset Allocation team outlining their views on markets:
I think the above article helps highlight just how volatile Cryptocurrencies are and also how very concentrated ownership of these assets are. These assets are extremely speculative and caution is advised before investing (gambling?).
Emerging Markets Debt looks like an asset class that could help add value to a portfolio over the long-term, but Currency risk needs to be factored in.
It remains to be seen whether the current bout of inflationary pressure are transitory or longer-term and when Central Banks might intervene to help curb inflation.
Recession was something talked about pre-pandemic, with the consensus from Fund Managers being that we were in late cycle, with a little room for growth. It’s hard to tell where the recession risk lies now given the impact of the Pandemic, but L&G’s Asset Allocation team see this as an issue that is at least 2 or more years away now.
Please continue to check our Blog content for advice and planning issues and the latest investment, markets and economic updates from leading investment houses.
Please keep safe and healthy.
Carl Mitchell – Dip PFS
IFA and Paraplanner
25/05/2021