Finance, technology and energy remain favoured investment options

In the latest edition of its popular webinar series, The Continental Group hosted experts to discuss the status quo in global financial markets and conducted audience polls to assess investor sentiment heading into 2022.

The Continental Group, a leading insurance intermediary and financial services provider in the GCC region, hosted a webinar titled ‘The Road Ahead’, enabling expert discussions on the global financial markets, the 2021 performance, and the predictions for 2022. The survey, conducted as part of the webinar, provided a sneak-peek into investor sentiments.

Tom Planterose, Senior Portfolio Manager, Sanlam Private Wealth UK; Paul Jackson, Global Head of Asset Allocation, Invesco; and Neelam Verma, Vice-President and Head of Investments, Continental Group, were the key speakers, and the webinar was moderated by Anselm Mendes, Executive Director of Sales, The Continental Group.

The majority of respondents recognised finance, technology and energy as the favoured investment options.

“Predictions are part and parcel of financial advisory. But, if 2021 was anything to go by, financial markets can always surprise you. So, your best bet is to diversify your portfolio, conduct financial reviews, perform rebalancing as per performances, and stay focused on your long term goals making the role of financial advisors paramount,” said Neelam Verma, Vice-President & Head of Investments at The Continental Group.

The equity rally in 2021 defied the earlier predictions, the pandemic cycles, and the rising inflation, inspiring widespread momentum investing. Meanwhile, the yield in government bonds continued to dwindle as the threat of inflation and economic uncertainties loomed large. The impact is such that, in the survey, about 50per cent of respondents said that high inflation is their biggest concern with respect to their investment portfolios.

“Inflation is the focal point for Central Banks in 2022. As a result, we could witness an increase in interest rates and their knock-on impacts, leading to volatility in equity markets. It is therefore advisable to be patient, do your due diligence, establish clear-cut goals, and focus on fundamentals — because merely buying into sentiments could be akin to catching a falling knife,” said Tom Planterose, Senior Portfolio Manager, Sanlam Private Wealth.

A whopping 81 per cent of respondents said they expect the prices to rise faster than income levels. The rising inflation also accompanies a slowdown in economic growth and steady unemployment levels — a recession-inflation phenomenon, commonly termed as “stagflation”. This presents a dilemma wherein measures taken to combat inflation widens unemployment.