After a few weeks during which the market seemed calm and steady, its volatility has returned, and the reason for this is one that has now become familiar: the pandemic. “The market doesn’t like to be reminded that COVID‑19 is still with us”, says Daniel Sancho, investment manager at MAPFRE Gestión Patrimonial, appearing on the weekly “Ponte en Acción” (“Take Action”) talk show on Negocios TV.
Spain has an investment problem that permeates productivity. Gonzalo de Cadenas-Santiago, director of macroeconomic and financial analysis at MAPFRE Economics, points out in this article that it is not a problem of quantity, but of the wrong mix of capital stock.
Investors have focused on the new Omicron variant and high inflation. Alberto Matellán, chief economist at MAPFRE Inversión, therefore expects volatility during the first three to four months of 2022, and recommends that conservative investors adopt a wait-and-see approach.
In the current scenario of rising inflation, what are fixed income managers doing? Javier Lendines, Managing Director of MAPFRE AM, highlights, in this meeting organized by Funds People, that there is no choice but to take on a little more risk in portfolios.
MGP, the MAPFRE unit that offers financial investment solutions to its clients to make their savings profitable, began its journey five years ago with four portfolios, from “prudent” to “very risky”, with accumulated returns ranging from 12.59% to 67.74% (10.94% annualized), respectively.
MAPFRE Economics has prepared an Emerging Risk Index to highlight the weaknesses that will affect the development of the nominal stability of the countries and to show the differential effects produced by the economic disruption caused by the pandemic. This article also shows the details of each of the countries that make up this barometer.
MAPFRE Economics is beginning to see a loss in the dynamism of growth and many economies will have to wait until at least 2022 to recover their pre-crisis level, so the recovery of their insurance markets may be uneven with a slower start. Details of the expected evolution of each market are shown below.