risk

Economists at the International Monetary Fund (IMF) assert that Europeans invest insufficiently in venture capital.

Investors concerned about uncertainty need to understand that it is fundamental to investing, but humans have a difficult relationship with it. Aswath Damodaran, a professor at New York University’s Stern School of Business and a prolific writer and social media publisher, is an expert on corporate valuation, finance and portfolio composition and is known as the “dean of valuation.”

Insurance companies are looking to significantly increase their allocations to private equity, mid-market corporate loans and infrastructure debt, according to a survey of almost 300 firms by Goldman Sachs Asset Management (GSAM).

‘Insurers are planning to increase risk in their investment portfolios, probably by shifting liquidity to riskier asset classes,’ GSAM concludes. The asset manager calls the risk sentiment ‘decidedly positive’, due to reduced uncertainties amid the global pandemic.

Investors should increase risk as some traditional safe havens are losing their shine, Robeco says in its five-year outlook titled ‘A Brave Real World’. Investment Officer spoke with Peter van der Welle, strategist in Robeco’s Global Macro team, about the asset manager’s outlook.