Applying the “three lines of defense” in multi-asset income
Facing volatile markets and lower rates, how can investors seek yield while managing risk?
We know that most successful investors invest with a long-term horizon. Having a long-term framework and staying the course are essential as important life goals, such as retirement or our children’s education, often span decades.
So what will be the global macroeconomic setting in the longer term? Overall, our 10- to 15-year economic growth forecast for the global economy is stable at 2.50%1.
While the long-term outlook of the global economy is positive, uncertainties are not unusual as we navigate different market cycles on the course of achieving our life goals. Investors should remind themselves to think holistically about their investment objectives and portfolios. Personal financial goals are not tied to how the market indices perform on any given day or month or even year.
It is important to consider your returns over the whole economic cycle. Learn about the views of active managers with a long-term view and global reach, consider your investment horizon and risk tolerance, and choose a disciplined investment strategy. In good and bad days, stay invested and adjust your investment based on your time horizon.