How professional investors position themselves now

Frankfurt Persistently high inflation poses a threefold problem for investors. First, your money gets less and less worth every year. This mainly affects cash holdings, i.e. fixed deposits or account balances, and interest-bearing securities. Secondly, because the central banks are taking countermeasures and the markets are adjusting to this, bond yields and overall interest rates are rising. This depresses the prices of those bonds that still have the lower interest rates and makes highly valued stocks less attractive.

The third problem: Because of the reaction of the central banks, the risk of a recession is increasing. This affects stocks, but also corporate bonds – especially those with low credit ratings.