Fewer stocks, more real estate and bonds

Evening mood in Singapore

The country’s sovereign wealth fund invests more heavily in infrastructure and real estate. These asset classes are designed to provide protection against inflation.

(Photo: Imago)

Tokyo, Bangkok, Stockholm The situation on the markets is currently one thing above all: complicated. Stock and bond prices have plummeted this year. Even gold is not yet considered an alternative. And the real interest rates for overnight and fixed-term deposits are still negative after deducting inflation.

How can investors react to this? In order to offer orientation in these difficult times, the Handelsblatt analyzed the behavior of the large sovereign wealth funds from Singapore, Japan and Norway. This shows that shares are currently less in demand, while bonds and real estate are gaining in importance. The strategies at a glance:

Singapore: infrastructure and real estate against stagflation

Singapore’s sovereign wealth fund GIC, one of the financially strongest investors in the world, is looking at the global markets with great concern: “We could be facing a long period of difficulties,” warned GIC boss Lim Chow Kiat recently.

Read on now

Get access to this and every other article in the

Web and in our app free of charge for 4 weeks.

Continue

Read on now

Get access to this and every other article in the

Web and in our app free of charge for 4 weeks.

Continue

source site-13