Active is: Hunting for Income
Low-for-long interest rates, pandemic-induced uncertainties, and political risks are weighing on the world’s economic outlook. Under this new normal, what are the implications for different asset classes? Allianz Global Investors (AllianzGI) delivers investment solutions that aim to combat the trend to hunt for better income strategies at measured risks, helping you to seek for better income opportunities amidst unpredictability.
To combat the public health crises, various countries have launched large-scale fiscal and monetary policies to restore market confidence and bolster economic development. In developed regions, such as the US, Europe and Japan, interest rates have reached zero or even negative territory. Achieving a stable income with traditional methods has become more challenging. In a persistent low-interest-rate environment, the value of cash will be eaten away by inflation over time. So how should we preserve our purchasing power?
Despite positive news about vaccines and treatments from various countries, the Covid-19 outbreak hasn’t yet been brought fully under control, and will continue to affect the global economy for the foreseeable future. As the new US administration takes office, the market-rattling US-China trade disputes of the past two years will also likely take a new turn. Under the clouds of uncertainty, how should investors lower risks when hunting for yields?
In the post-pandemic era, while the global economy has bottomed out and rebounded, the pace of economic recovery varies across countries as their policy responses differ in vigorousness. Under these circumstances, whether one is investing in developed or emerging markets, there will be challenges. The outlooks on different geographical economies and asset classes are set for massive changes. How can we seize growth opportunities and identify potential income sources that are sustainable?