Volatile markets, inflation reaching new heights and the risk of recession are making things difficult for investors right now. “Looking ahead over the next 10 years, it is unlikely that the forces driving rapid performance to growth over value will repeat themselves,” Paul Danis, head of asset allocation at Brewin Dolphin, told CNBC. “Bond yields have reached a structural low, and relative valuations remain high. Regulators have become more focused on curbing the already very dominant mega-cap platform companies.”[ads1]; But there are pockets of opportunity, according to a number of market experts, especially when it comes to more long-term investment. Here, CNBC PRO asks them where to invest with a decade-long timeline. Where to invest For Susannah Streeter, senior investment and market analyst at Hargreaves Lansdown, a 10-year investment horizon could allow investors to take more risk. “An alternative is to invest in funds with a focus on smaller companies in emerging markets, such as where there may be potential for greater growth,” she told CNBC via email. However, she stressed the importance of diversification in sectors and geographies, in addition to assessing potential political volatility and regulation in emerging markets. Vincent Mortier, investment manager at asset manager Amundi, also said that emerging markets may look attractive on this timeline. He noted that the uncertainty regarding equities “remains high”, and therefore recommended to consider various assets to invest in. “We maintain our positive view of EM [emerging market] hard currency bonds because of their attractive valuations and exposure to commodity exporters, “he told CNBC via email.” When it comes to currencies, we continue to have a positive view of the US dollar vs. Amundi – Europe’s largest asset manager, with $ 2.247 trillion under management – favors the US over Europe, and remains neutral in relation to the European Championships, Mortier said. He added that investors could also consider “real assets” (or physical assets, such as Hargreaves Lansdowns Streeter flagged ESG (or environmental, social and governance factors) as another thing to consider. “It would be worth looking at funds with an ESG focus. , with a focus on larger technology, pharmaceutical or financial companies that aim. to deliver long-term growth responsibly, “she said. She cited the British health service Smith & Nephew as one such example, which she said will benefit as hospitals resume operations delayed due to pandemics.” In particular. “There should be significant potential for the group’s activities in sports medicine and orthopedics,” she said. term, according to Streeter, who picked out Microsoft, Apple, Amazon and Alphabet. “This is partly because they have the resilience of large piles of money to fall back on, but also because of their brand appeal, and the fact that their technology infiltrates everyone. “parts of our daily lives,” she told CNBC via email. Microsoft “makes software that the world does not know how to live without,” Streeter added, and she also enjoys gaming revenue. as well as the cloud business. Read more ‘We see a clear role for alternatives’: Pros give their tips on how to trade the volatile market Goldman says buy these global stocks to play $ 900 billion EV opportunity – one with 50% upside Tech mentions the new value stocks ? Here are the 10 cheapest names in the technology field. Amundi’s Mortier, however, sounded a caution on Big Tech, noting that the performance of the five largest companies has declined. “We believe this trend will continue in the coming years as the growth of the largest companies matures, regulation increases and investors look elsewhere for returns,” he told CNBC via email. The technology-heavy Nasdaq is down around 28% so far this year. Conflicting views Asked if he has any conflicting views on where to invest, especially over a 10-year timeline, Danis said the Chinese market is a market that Brewin Dolphin believes will provide “relatively strong gains in the long run.” While the Chinese government has cracked down on the technology giants, for example by introducing anti-monopoly guidelines and focusing on “common prosperity”, Danis said that this “undoubtedly is now fully reflected in valuations”. “The dominant market sentiment towards China right now is fear. As Warren Buffett says, you want to be greedy when others are afraid. There is a lot of room for investors to warm up to China … While the Chinese government is taking greater control, it is still “will remain an extremely innovative and entrepreneurial place. Productivity growth is likely to remain relatively strong,” Danis added. What to ask your financial advisor “The question of asking an investment advisor is whether your investments still fit your circumstances, whether your financial work or retirement situation has changed or whether you have a new goal for your investments,” Streeter said. Investors should also think about their attitude to risk and whether their portfolio needs to be adjusted accordingly. “Instead of looking at short-term performance for specific investments, it is important to look at a longer time horizon, ideally at least 5 years, instead of being drawn into the twists and turns of short-term results. Investors should also ask what the relative the cost is of their investment, “she added.
