Global survey revealed which are the three most attractive investments for Argentines

CHALK It is the flagship studio of Schroderswhich surveys more than 23,000 people who invest from 33 places around the world, to which he had exclusive access Ambit. The survey results revealed in what Argentines mainly invest, what they expect about the returns and what their wishes would be for the future. Here the main conclusions:

He 35% of respondents believes that its profitability in the next 12 months compared to the previous 12 months will be “greater”. For his part, the 32% maintains that it will remain “without changes”, The 17% what will be “significantly higher” and the 12% believe it will be “better”while only 3% maintains that it will be “significantly lower”.

Regarding the investments that became more attractive for Argentines in the last six months, we find: in cryptocurrencies number one spotin the number two position is the Common Investment Fundsand private assets such as shares or real estate investments.

For their part, the three private assets in which Argentines most want to invest are: with 27.1% company shareswith the 24.5% active in the real estate sectorand finally, with the 25.3% in infrastructure and renewable energy.

Regarding the reasons why Argentines would invest in private assets: 56% higher performance, 52% investment diversification, 31% lower volatility, and 28% considerations about sustainable or impact investing.

Finally, the five main perceptions of obstacles to investment in private assets for Argentines were: 67% lack of liquidity, 65% less transparency in the asset class, 61% less experience and knowledge in the asset classes, 54% in costs and expenses, 44% minimum investment size.

Inflation and high rates: global problems

One of the first queries of the study at a global level was: with higher inflation and interest ratesAre we facing a regime change for politics and markets? 31% totally agree, 47% agree, and 18% neither agree nor disagree.

Another conclusion was that given the tightening of the economic outlook in various countries, the majority of investors modified their financial strategy. The most common response was to increase savings and reduce spending, an option chosen by 44% of those surveyed. However, with the rising cost of living, many are forced to take on more debt. 41% of participants between 18 and 37 years old see it as a “likely” alternative.

A significant minority more than a third recognize the need to adapt, but he doesn’t know how to do it, despite having had enough time to react. It should be noted that The data collection period for our survey began in May 2023more than a year after the world’s major central banks began raising rates in the first quarter of 2022.

This inaction is linked to a lack of investment knowledge. Among those who rated his knowledge level as expert, 16% admitted they still needed to adjust their strategy. While those who rated their investment knowledge as beginner level, The percentage was more than double, 37%.

Those who considered themselves experts also differed in how they adjusted their finances, making them more likely to consult a financial advisor. About 46% of those who rated their knowledge in investments as an expert they expected to do, compared to the 36% who rated themselves as beginners.

In addition to generational differences, there are also geographical nuances. lAmericans are adding risk to their portfolio, as 81% say they have increased their risk tolerance.

In Asia, they are also increasing their risk tolerance on average; 62% claim to have a greater tolerance for risk compared to five years ago. It is in Europe (including the United Kingdom) that caution prevails, especially in Germany and Italy.

Among the current macro trends, AI and greater regulation in technology are considered the most promising for investors. The enthusiasm for artificial intelligence could be linked to a more widespread interest in technological investment.

The real estate sector continues to be an attractive refuge for many investors, ranking second among thematic investments. Next in terms of popularity are electric vehicles and sustainability. At the same time, 60% of investors expect higher returns for the next 12 months compared to the previous 12 months.

“We are facing an investment panorama increasingly influenced by the ‘3D’: deglobalization, decarbonization and demographics. Investors are still coming to terms with the idea that high inflation and rising interest rates are here to stay. Every asset has readjusted its value to compete with the return that money could generate simply by sitting in the bank. Once again, assessment is important. Compared to the last 15 years, a more agile and proactive investment approach may now be needed. The study results show that some investors are adapting faster than others,” he said. Johanna Kyrklund, Co-Head of Investment and Group Chief Investment Officer.