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JP Morgan Asset Management recommends diversifying investments to address adverse situations such as high inflation

Mexico.- Given the adverse economic environment, volatility, high global inflation, uncertainty and now the risk of a recession in the United States and Europe, investors need to take into account diversification in instruments, primarily those that recognized as insurance, said Gabriela Santos, Global Market. Strategies at JP Morgan Asset Management, questioned at the launch of that company’s ETF (Exchange – Trading Discovery) via the Institutional Stock Exchange, said that the investment horizon should not focus in the short term, as these problems can be solved. , like past inflation, will take another few months …

“meInvestors generally have an investment horizon that is a little over a few weeks or a few months, so how to navigate in this difficult environment is very important, focusing on quality companies, having assets that will help us diversify , but if our medium – and long – term objectives change, then will global investment be abandoned altogether. Investment in risk assets. Finally there is the visibility that the markets are looking for and when that happens they recover very, very quickly and that is impossible to make the perfect timing of the market. So quality, diversify, but keep the investment in the medium, long term ”.

He recalled that in the Latin American region, including Mexico, since 2012 began to register a decline in the interest of foreign investors, which was due to two factors, a fall in the commodity price bubble, but also due to growth weak in the last decade, so they have moved to other regions such as Asia, specifically China, Korea or Taiwan. He also said that the political issue presented in the region is another factor, despite all this, he pointed out that the high interest rates offered, for example, in our country, are attracting investors …

We can of course add that sometimes the local political uncertainty, then it is a structural change, from the last decade lower in Latin America and higher in emerging Asia … it is what is being We currently see a certain interest in Latin America and here specifically talking about Mexico, speaking of the fixed income portion, that is because there is a really interesting differential of rates against the rates offered by the United States or developed countries another, because we are far ahead in this monetary opening cycle. time, guiding the diet, not following it as it has historically been. So we see interest and opportunity in local fixed income. ”

He also said that the positive assets are commodities in the short term, given the high demand, as well as the disruption of supply chains, which will continue, as long as a solution to the geopolitical conflict is not reached, he said. investing in commodity companies is currently an appropriate option to diversify the geopolitical risk, high inflation risk.

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