Investors are at the intersection, as evidenced by recent developments in financial markets, said Florin Dole, executive director of Amundi Asset Management Romania at a press conference yesterday.
He said: "We believe that we are at the intersection, showing the development of new financial markets that come after a period of sustainable global economic growth." A moment when we think our investors are wondering what to do, in which direction we should go at this time. "
According to Amundi, the pace of global economic growth has already reached the highest possible value, with the possibility of witnessing more international growth in the future.
Bernard Pujol, Managing Director of Amundi Paris for Partnerships and Services, said: "At the end we have periods of normalization of monetary policy, on the one hand, raised and implemented reference interest rates in the United States of America) and the European Central Bank (ECB) will start raising interest next year, which means that we are in this normalization environment.
Of course, this will lead to low market liquidity and tightening of financial conditions. A key element is the increase in volatility, driven by the rise in interest rates on one side and on political events such as the trade war, which is also expected to increase volatility in financial markets next year, on the other. "
Bernard Pujol added: "But it should be noted that in the last three to four years the level of volatility in the markets has decreased and that the increase in volatility will be a key challenge for us (…) economic growth forecasts for 2018 and 2019 but global growth perspectives remain robust. "
According to Nuria Trio, the head of the Business and Investment Department at Amundi Milan, despite fluctuations, shares are the property that secured the best long-term return (5.8% for Amundi funds), followed by bonds (2.8%) and government bonds (2.4%), while the only asset with negative returns is bank deposits, whose profitability was affected by inflation.
Amundi Asset Management is an investment manager operating in Europe, North America, Asia and the Middle East and listed on the Paris Stock Exchange in November 2015.
Of the EUR 1,300 billion of management, 614 billion are fixed income investments; 234 billion in mixed funds; 192 billion invested in stocks; 186 billion are liquidity solutions, while other assets worth 81 billion euros.
After the financial crisis in 2008 and December 2015, the US interest rate fell to 0.25%, so credit institutions had a much easier liquidity approach.