VTB Capital investment forum "RUSSIA CALLING!" discussed the most promising asset classes in terms of profitability in 2021. The head of the global economy and strategy department at Allianz Global Investors, Stefan Hofrichter, said that the next year is going to be "intriguing" in terms of stock price dynamics.
“I really like the idea of investing both in stocks and in gold. I’m sure it’s going to be an intriguing year for the stock market. Due to the uncertainty caused by the pandemic, the market is very uneven. However, even if we take into account that we’re now having a second wave of the coronavirus, at least for the next 12 months we can talk about additional incentive measures that will support the shares for at least a year”, said Hofrichter.
He stressed that technology companies, even in spite of their high cost should become a “must-have” for investment portfolios.
“Stocks should become the number one asset. They can be selected from a geographical point of view, by sector. Look at emerging market stocks, especially Asian ones, look at the dividends they give”, said Christopher Granville, managing Director for Europe, Middle East and Africa markets and global policy research at TS Lombard.
Jim Rogers, the founder of Rogers Holdings, in turn joined the opinion about the prospects of shares in 2021.
"I would not buy US stocks because there is a bubble inside the market. I have investments in gold in my portfolio, but I would say that silver is also a very interesting asset. It is now just 6% off its all-time maximum. Gold has also recently reached the record level”, he said.
Miroslav Singer, the Director of institutional Affairs and the Chief economist at Generali CEE Holding B. V., called on investors to look at the companies that entered the path towards digitalization. It’ll help them keep their market share which is under threat due to the coronavirus, he thinks.
“We need to take a closer look at the companies that are looking for new ways of working. I mean retailers and other companies that are building the relationship with consumers in a new way”, — says Singer.