Where To Invest This Quarter, Part 1

Where To Invest This Quarter, Part 1

over 3 years ago2 mins

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Several major money managers have shared their top investment tips for this quarter – and Finimizers looking to fine-tune their own strategies may want to take note… 🧐

What does this mean?

Data giant Bloomberg regularly taps professional investors for their thoughts on where best to move money right now. And while this quarter’s round of recommendations included a notable number of wild cards – more on which tomorrow – there were also some eminently sensible suggestions.

Gold has been in the spotlight this week, and Aviva Investors isn’t alone in rating the metal as a hedge against the declining dollar. Macro Capital’s investment chief agrees – and points out that ongoing financial stimulus should also keep propping up major stock markets. Given the latter’s particular interest in emerging markets, Asian stocks (outside of Japan) are flagged as being particularly well placed for future growth; Mexico and Brazil less so 😖

Singapore’s Golden Equator accordingly backs local companies in digital-first sectors like social and mobile entertainment, with the tech trend – augmented reality gaming in particular – also a key focus for Galaxy Investment Partners. But Golden Equator emphasizes opportunities elsewhere too. Investors’ increasing interest in sustainability may, indeed, have helped the mean, green Danish stock market to become the world’s best-performing in 2020 so far.

The OMX Copenhagen 20 (blue) versus the US S&P 500 (orange); Source: WSJ Markets
The OMX Copenhagen 20 (blue) versus the US S&P 500 (orange); Source: WSJ Markets

Why should I care?

One big question is how exactly average investors can go about making these plays. Some areas are largely inaccessible; the non-investment-grade debt recommended by Rockefeller Capital Management, for example.

Happily, however, there’s an easy way for Finimizers to add just about everything else to their portfolio: exchange traded funds (ETFs) offer exposure to entire sectors or indexes in one fell swoop. Those interested in Asian stocks, for example, could buy the iShares MSCI All Country Asia ex Japan ETF – or the iShares Asia 50 ETF if they wanted to focus on only the biggest firms.

The latter has slightly outperformed in 2020
The latter has slightly outperformed in 2020

The low-cost SPDR Gold MinisharesETF, meanwhile, offers the sort of physically-backed exposure to the metal advised by Aviva. And for those attracted by Danish stocks’ stellar 15% returns this year, the iShares MSCI Denmark ETFor XACT OMXC25are the way to go 👍

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Disclaimer: These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment advisor.

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