Commodities and more aggressive alternative strategies are among the options being explored as institutional investors look to counter potential threat.
FinanceAsia spoke to experts on how countries can balance their short-term energy needs with longer-term climate goals, in light of pressing energy security concerns and price volatility.
PineBridge Investments’ Elizabeth Soon, head of Asia ex-Japan equity, Cynthia Chen, equity portfolio manager, and Arthur Lau, head of Asia ex-Japan fixed income make a case for the region offering investors stability that may be lacking elsewhere amid global tumult.
G7 leaders have committed to indefinite support for Ukraine in its defence against Russia’s invasion in addition to a fresh round of sanctions on Russian oil and gold.
With the 60/40 allocation a thing of the past, investors are looking to alternative assets for higher yield, inflation hedging, and portfolio diversification.
A White House executive order to lay out a national policy for digital assets should help boost credibility for cryptocurrencies, but concerns that decentralised finance technology can help evade sanctions still lingers for policymakers and investors.
Some analysts remain bearish on gold, believing that energy, industrial metals or real estate would be a better hedge, while others think the metal is now trading at an attractive rate.
Gold, commodities and real estate are among the asset classes that investors should consider as hedges against inflation, but knowing when to get out is key.