Asset Classes to Invest in for Maximum Gains in the New Market Shift

Investment strategist at Schroders, Bob Armstrong, has advised investors to look beyond last decade’s winners as the world shifts towards a new era of stickier inflation and more hawkish monetary policy. As such, Armstrong is positioning his portfolio defensively by focusing on fixed income, healthcare, and staples. He has trimmed some of his more cyclical and tech-based investments and believes it is now time for investors to buy small- and mid-cap stocks. Mega-cap tech stocks are also likely to suffer as higher inflation rates persist. Armstrong suggested that investors should seek out high-quality fixed income rather than spread risk, and added that commodities could be a good strategic allocation as they would serve as an inflation hedge and portfolio diversifier during a critical energy transition.