For BlackRock, “volatility will be persistent”; See how to protect yourself

For BlackRock, “volatility will be persistent”;  See how to protect yourself
See how to protect your portfolio from volatility. Photo: Pixabay

THE volatility in the financial market was discussed at the table “Investments in Brazil and Latin America in the next 5 years”, at the event Bloomberg Línea Summit, in São Paulo, this Wednesday (14).

Karina Saade, Head of BlackRock Brasil, Silvio Cascione, Director of Eurasia in Brazil and Marcus Vinícius Gonçalves, director of Franklin Templeton, talked about ways investors can escape volatility in their portfolios.

For Saade, it is impossible to set up a volatility immune portfolio — phenomenon, in the specialist’s view, inherent to economic cycles.

She cites a “change in monetary policy” that causes central banks around the world to be asked to manage between inflation control and inflation. stimulus to economic growth nations, which only accentuates the phases of economic cycles and, consequently, instabilities.

It is at this point, he points out, that the presence of an investment manager becomes even more important.

The appropriate strategy, according to Saade, must be to set up a minimum volatility portfolio (with fewer investments that vary with the economic cycle, such as those linked to inflation) and with a focus on income, such as dividend-oriented securities.

Volatility requires diversification and open-mindedness

For Marcus Gonçalves, from Franklin Templeton, volatility, especially with regard to rising inflation, can be fought with a good, old and primordial ally in every investor’s journey: diversification.

“Diversification will be more important, and more and more we will have to look for alternatives to the classic ’60 – 40′ or ’40-60′”, he said, referring to the more simplified investment organization style, which only considers the income division. fixed – variable 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 It is something that will grow more and more”, he said.

Saad, from BlackRock, also recalls that it is interesting to put together a strategy that is less linked to economic activity, and more focused on the so-called “megatrends”, trends that should continue regardless of the economic scenario, such as, for example:

  • Artificial intelligence;
  • Urbanization;
  • Clean energy;
  • Health (thinking about an increasingly aging population), among others.

“The market is offering sensational opportunities for those who want to establish a position now”, concluded Gonçalves.

Besides the volatility, several other topics were discussed in the panels of the Bloomberg Línea Summit. Keep following Suno News coverage.

About Yadunandan Singh

Born in 1992, Yadunandan approaches the world of video games thanks to two sacred monsters like Diablo and above all Sonic, strictly in the Sega Saturn version. Ranging between consoles and PCs, he is particularly fond of platform titles and RPGs, not disdaining all other genres and moving in the constant search for the perfect balance between narration and interactivity.

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