- The backdrop: stock values are high, bond yields are low and central banks are cutting rates.
- Which means: It's going to be harder to create investment returns in the coming years.
- The key to success moving forward is to plan, protect and grow.
The last ten years have delivered strong returns for investors in stocks, bonds and other assets. This record-breaking cycle could keep going, but depending on how economic and policy events unfold, it could also mean lower returns on safe assets, like bonds.
So, how do you position your portfolio for what lies ahead? Plan. Protect. Grow.
In their recent publication, “Plan, Protect and Grow: Global financial markets,” our research partners show why planning is important and outline specific investment strategies you can put in place right now to protect against pitfalls—and capitalize on opportunities—as markets become increasingly challenging.
To do this, our research strategists recommend building a portfolio with these key characteristics in mind.
Build your portfolio around your goals, not necessarily your risk tolerance, by using 3 key strategies: Liquidity. Longevity. Legacy. This allows you to have not too much risk or too little risk but the right amount of risk.
A well-diversified portfolio can help you manage the risk of not meeting your goals while still being able to pursue long-term growth.
You can still capture investment returns in today’s markets through solutions like private markets, long-term investment themes and sustainable investing.