Money losing investments - guaranteed!

Beginning of trade wars could trigger a strong headwind

clock • 3 min read

Stocks and bonds have performed well for investors over long horizons, writes Vitali Kalesnik, partner and director of research, Europe at Research Affiliates.

Today, however, the vast majority of liquid investment assets are priced to generate close-to-zero real income, and in many instances, are priced to lose money.  New horizons: Which frontier markets could be the winners in 2019? The European Central Bank is targeting a zero interest rate, and Japan's, Sweden's, Switzerland's, and Denmark's central banks are targeting negative interest rates. This translates into more than $11trn of debt globally earning a negative nominal interest rate.  On an unprecedented scale, investors are paying borrowers to borrow, and investors will lose mo...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Emerging markets

JPM AM's Hugh Gimber: Thinking more broadly about EM stocks

JPM AM's Hugh Gimber: Thinking more broadly about EM stocks

Client demand into region rising

Hugh Gimber
clock 26 March 2024 • 4 min read
Four Graphs explaining India

Four Graphs explaining India

Four experts write

Investment Week
clock 12 February 2024 • 4 min read
JEMI's Omar Negyal: Emerging markets are well positioned to support AI boom

JEMI's Omar Negyal: Emerging markets are well positioned to support AI boom

Early adaption is key

Omar Negyal
clock 11 January 2024 • 2 min read
Trustpilot