The financial markets are constantly on the move. Rising interest rates can be disruptive to investments and have significant impacts. It is perfectly reasonable for investors to be concerned about the health and performance of their investments. But even in turbulent times, there are opportunities to be found. Find out what they are, with Jan Paffenholz, Private Banking Adviser The financial markets are constantly on the move. Rising interest rates can be disruptive to investments and have significant impacts. It is perfectly reasonable for investors to be concerned about the health and performance of their investments. But even in turbulent times, there are opportunities to be found. Find out what they are, with Anthony Cuvelier, Senior Private Banker.Even the real estate sector, which was under severe pressure throughout the past year, is showing initial signs of stabilisation.
A turbulent economic environment
To counteract the inflation that we are now faced with across the board, the central banks have started to tighten their monetary policy. This has led to a sharp increase in key interest rates and bond yields on both sides of the Atlantic. This general rise in rates is unprecedented in the last 40 years and makes for a challenging economic situation. It is therefore perfectly reasonable for investors to reassess the most appropriate investment solutions.
Any investment opportunities?
Although the economic context is somewhat chaotic, the rise in interest rates has allowed money market and bond investors to find new investment solutions.
Thanks to a significant impact on the value of outstanding bonds, cash is generating a return again (in deposit and term accounts). Most euro-denominated bonds from quality issuers are now offering positive returns. The rise in yields means that bonds are once again showing a decent risk/return profile and can stand alongside equities.
Investment strategy unchanged
Despite almost daily changes punctuating the financial markets, an investment strategy requires long-term thinking. It does not need to be called into question at every market twist and turn but should be considered based on acceptable risks, chosen investment horizon and targeted average returns.
Our mission is to guide you, be available, listen to you and answer all your questions. The preservation and growth of your assets over the long term in light of market and economic trends is our objective. So you can sail calmly through the turbulent times.
