British investment bank HSBC predicted a time of “great changes” for the world economy, the main of which will be a radical rebalancing of investment portfolios, writes CNBC.
According to analysts at HSBC, the global economy is entering a second, “flatter” phase of a two-stage recovery, which can be summarized as a tick on the chart. In the next six months or a year, world GDP will recover to the level of 90-95 percent of the pre-crisis indicators.
The main changes will be associated with the massive refusal of investors from government bonds of different countries, which were considered one of the most reliable and attractive assets over the past decade – largely due to positive returns and negative correlation with stock prices.
However, recently, due to the policy of many central banks to reduce rates to stimulate national economies, the yield on government bonds began to decline critically. In such conditions, investors – both private and institutional – are likely to reorient themselves to corporate securities, as well as to other assets, including gold.
Some investors looking for higher returns may also turn to venture capital investments in high-tech startups that are characterized by an increased level of risk.