The Case for Alternatives
Apr 26, 2023
1 minute read
1 minute read
Key takeaways:
- Global trade will continue to be tested in 2023, as the world struggles to adapt to this new multi-polar environment, characterised by a more regionalised focus, higher (or less stable) inflation, and a baseline of interest rates that is likely to be higher than we have become used to in modern times.
- The expanding range of listed alternative assets has resulted in a significant deepening in market liquidity, offering potential for attractive income streams and exposure to many emerging areas of potential growth.
- The key for a successful allocation to alternatives is a clear definition of an investors’ respective goals and objectives and the duration of their investment horizon. This can help to ensure that any allocation to alternatives aligns with an investors’ overall strategy.
The world in 2023 is one dramatically changed from where it was 12 months earlier. A weakening in the drivers of globalisation, war in Europe and renewed rivalry between economic blocs has seen the world move towards fracturing orbits of influence. These changes have had strong inflationary implications, affecting competition, supply chains and leading to significant energy price volatility.
In this Case for Alternatives, we consider some of the factors driving interest in alternative allocations and give a brief insight into some of the options open to investors.
JHI