December 3, 2023

For BlackRock, “The Volatility Will Be Ongoing”; See how to protect yourself

For BlackRock,
Learn how to protect your portfolio from volatility. Photo: Pixabay

The volatility In the financial market discussed at the table.”Investments in Brazil And in Latin America in the next five years”, at the Bloomberg Linea Summit, in São Paulo, this Wednesday (14).

Karina Saadeh, President Black stone Brazil, Silvio Casción, director of Eurasia Brazil, and Marcos Vinicius Gonçalves, director of Franklin Templeton, spoke about ways investors can escape volatility in their portfolios.

For Saadeh, it is impossible to prepare a file immune volatility portfolio A phenomenon, from the point of view of the specialist, inherent in economic cycles.

cite ‘change level in monetary policy“Which is causing central banks around the world to demand trade-offs between controlling inflation and stimulating economic growth States, which highlight only the phases of economic cycles, and therefore instability.

He points out that at this moment, the existence of investment manager becomes more important.

The appropriate strategy, according to Saadeh, should be the establishment of a Minimal volatility portfolio (With fewer investments that differ with economic cyclesuch as those linked to inflation) with an emphasis on income, such as papers that target earnings.

Volatility requires diversification and openness

For Marcos Gonsalves of Franklin Templeton, volatility, especially in relation to rising inflation, can be fought with a good, old and essential ally in every investor’s journey: diversification.

“Diversification will be more important, and we will have to search more and more for alternatives of ’60-40′ or ’40-60′,” he said, referring to a simpler method of investment regulation, which takes into account only the division of income – variable fixed income.

“We have seen a huge increase in private markets. When they say that B3 has no size, they ignore the fact that direct and private investment in Brazil has been very large. Invest in alternative ways He said it was something that would grow more and more.

Saad, of BlackRock, recalls that it would be interesting to have a strategy less tied to economic activity, and more focused on the so-called “big trends,” which are trends that should continue regardless of the economic scenario, such as, example:

  • Artificial intelligence;
  • bring up;
  • clean energy;
  • Health (think increasing population aging), among others.

“The market presents great opportunities for those who want to build a center now,” Gonçalves concluded.

besides volatilitySeveral other topics were discussed in the Bloomberg Linea Summit discussion panels. Keep up with our Suno news coverage.