The pandemic has undoubtedly left havoc in different sectors, but it has also accelerated several changes in the way of doing business and of course of investing. Interest in the world of investment in Mexico is increasing exponentially. According to data from the National Banking and Securities Commission (CNBV) the number of accounts has tripled in the last 12 months. This phenomenon is not only derived by technological advances, which have undoubtedly facilitated the way of investing, but also by social phenomena such as “meme stocks”, cryptocurrencies and the good behavior of stocks at a global level.
However, as the popular saying goes, “The only constant in life is change,” and it is very likely that 2022 will be a different year for the stock markets. To begin with, a rebound in inflation has been observed at a global level that had not been seen for decades, which increases the need to seek investment options that help safeguard the value of assets. In this environment in which people need to find better return propositions and acquire cheap-looking financial assets, it will get more complicated.
If debt instruments, which tend to have somewhat more stable or less volatile yields, are reviewed, they will likely be negatively impacted by an environment of rate hikes. For their part, equity instruments have enjoyed a relatively long period of sustained growth, which implies that, at least under some metrics, they already look expensive. This does not mean that a major correction in the stock markets is coming or that all bonds will have negative returns, but that, going forward it will be more important than ever to have an investment specialist to help counteract portfolio volatility and find new opportunities.
The world of investing is changing and fortunately there are already several different asset classes that can help complement an investment portfolio. Private equity funds, FIBRAS and hedging derivatives will be useful tools to face 2022 and of course to maintain a diversified portfolio.
The author is VP Client Strategy- BBVA Asset Management
Reference-www.eleconomista.com.mx