Investors remain calm: stability despite market turbulence!

Investors remain calm: stability despite market turbulence!

Invesco, a leading asset manager, currently manages $1,900 billion on behalf of clients. The company promotes global diversification, yet many investors are reluctant to significantly reduce their exposure to the US. Andrew Schlossberg, CEO of Invesco, reports stable investor sentiment despite high market volatility in recent months.

Investors do not drastically change their long-term investment strategies. This leads to a lack of panic selling. Investors currently have a high proportion of dollar investments in their portfolios, while shifts into European and Asian securities are limited. Some investors have reduced their holdings in American stocks from 70% to 68%, reflecting the continued focus on the American market.

Economic framework conditions

The American capital markets continue to be considered liquid, transparent and safe, which underlines their attractiveness. Invesco encourages investors to think outside the box as European stocks often offer better valuations. Professional investors, on the other hand, are often hesitant to deviate from benchmark indices that include high American shares.

At the same time, inflation and interest rates are big issues for investors. Trade conflicts and budget deficits could drive up inflation. The US Treasury bond market remains stable and the dollar retains its position as the global reserve currency.

Growth in alternative investments

Invesco has been active in China for 20 years and sees potential for the capital market there. There is also growing interest in alternative investments such as private equity, real estate and private loans, particularly among wealthy private customers. However, the illiquidity of private markets is often underestimated; Asset managers recommend limiting their share to 5-15%.

Although experts warn of risks in the area of ​​privately granted corporate loans, Schlossberg does not see a systemic crisis. Invesco offers both illiquid private investments and exchange-traded funds (ETFs). Despite the challenges facing active investment funds, they are not going away. Tax reasons play a crucial role here.

Trends in the investment industry

Future trends in the financial industry include the tokenization of assets and the increasing importance of diversification. It is foreseeable that technology will fundamentally change the industry in product development and customer support. An example of innovative products is Invesco's offering, which includes ETFs whose ratings are prepared by Morningstar Inc. based on a risk-adjusted return measurement. These ratings take into account a fund's monthly performance, with negative deviations being given greater weight.

The top 10% of funds in a category receive five stars, the next 22.5% receive four stars, and so on. Sales fees are excluded, while fees and expenses are included in the ratings. The monthly updated ratings enable investors to make informed decisions and better assess the performance of their investments.

Overall, the market shows that despite uncertainties in the global economy, investors are increasingly willing to diversify their strategies and explore new forms of investment. For more information on Invesco ETFs, please visit Invesco.