Investors are at a crossroads, as evidenced by recent developments in financial markets, said Florida Dolea, executive director of Amundi Asset Management Romania yesterday at a press conference.
He said: "We think we are at the crossroads. It shows the latest developments in financial markets following a long-term global economic growth period." At a time when we think our investors are asking themselves: what should we do, in what direction we should lead now. "
According to the Amundi representatives, the pace of global economic growth has already reached its peak, with the possibility that in the future we can observe the international growth environment.
Bernard Pujol, Amundi's Paris partner and service director, said: "We are at the end of the normalization of monetary policy. On the one hand, benchmark interest rates have been raised and implemented in the United States of America, and the European Central Bank (ECB) will begin to increase interest next year, which means that we are in this normalization environment.
Of course, this will lead to a low-liquidity market and more stringent financial conditions. One of the key elements is the increase in volatility promoted by rising interest rates on the one hand and political events, such as the trade war, which also seeks to increase instability in financial markets in the next year, on the other. "
Bernard Pujol added: "But it should be noted that in the last 3-4 years the market volatility has been reduced, and this increase in volatility will be a major challenge for us (…) We have negatively reviewed the economic growth forecasts for 2018 and 2019, but global growth perspectives remain robust. "
Despite the fluctuations, Nuria Trio, head of the business and investment development division of Amundi Milano, believes assets are the best performing long-term profits (5.8% of Amundi-managed funds) followed by bonded corporations (2.8%) and government bonds (2.4%), but the only assets with a negative return are bank deposits whose profitability has decreased with inflation.
Amundi Asset Management is an investment manager operating in Europe, North America, Asia Pacific and the Middle East, and registered on the Paris Stock Exchange in November 2015.
Of the € 1.3 billion in management, € 614 billion is fixed income investments; 234 billion mixed funds; 192 billion shares invested; 186 billion are liquidity solutions, while other assets are worth 81 billion euros.
Following the 2008 financial crisis and December 2015, the US benchmark interest rate was reduced to 0.25% to allow credit institutions easier access to liquidity.