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Expert recommendations for investing in the second half of 2023

Professionals guide us on where potential investments could emerge and how to face the challenges that the current situation presents us with.

RankiaPro Europe

2023/08/04

In the midst of a year characterised by turbulence, uncertainty remains a constant and the second half of the year is also expected to be marked by challenges. Against this backdrop of uncertainty in financial markets, we approached experts from some prominent fund managers, such as Allianz Global Investors, Amundi, Carmignac, Federated Hermes, and Singular Bank, for their perspectives.

In their valuable opinions, these experts shed some light and give us a clearer view of the investment opportunities for the second half of 2023. Let’s find out from these professionals where potential investments could emerge and how to face the challenges that the current situation presents us with.

Investment opportunities for the second half of 2023

Asset Managers	Investment prospects for the second half of 2023
Allianz Global Investors	The second half of the year could be somewhat turbulent, as markets may have to adjust their expectations in key sectors. Central banks may need to raise rates further – even after a pause – before “pivoting” to lower levels of monetary policy. In this context, possible entry points for equities, high yield bonds and commodities. It will also be necessary to identify those companies with pricing power and those anchored around reasonable valuations and structural trends. La responsiveness will be important, for both investors and companies.
Amundi	Global growth will continue to slow, bottoming out in the second half of 2023; gradual recovery most likely in the first half of 2024. The deceleration of inflation will be gradual, mainly core inflation. Quality shall prevail: investors should enter the second half of the year with caution and focus on quality across the board. Looking ahead to 2024, the outlook for improving earnings reveals opportunities to add risky assets. Emerging markets: leveraging growth advantage in equities and bonds to enhance diversification and boost medium-term return potential, with a focus on Asia.
Carmignac	The resilience of economies and the persistence of inflation will not allow central banks to change course in the second half of 2023. Fixed income: the attractiveness lies both in the nominal rates as well as real rates, in addition to the corporate debt. Equities: markets are expected to continue to walk a tightrope as the economy slows, without going off the rails, and the pace of disinflation is expected to keep rates and thus stock markets in check. They are opting for defensive stocks and sectors, given the slowdown in the economic environment.
Federated Hermes	We expect a buoyant second half of 2023, as we anticipate a powerful wave of earnings growth that will boost stock prices. Uneven situation for different sectors: oil, materials and healthcare paint a picture of more moderate earnings growth; compared to the strong growth forecast for technology and communications.
Singular Bank	The global economic environment will be marked by a slowdown in growth. The progress of the global GDP could be around 2.0%, weighed down by the deterioration of economic activity expected from the coming months in the US, the Eurozone, with a risk of recession in Germany. Preference for investing in bonos given the better risk-return in fixed income. Rising interest rates offer an opportunity to extend the duration of government bonds. Limited upside potential in equity markets until rate cuts begin, and remains biased in favour ofAsia-Pacific equities (especially Japan)..