Emirates NBD: The world is on the threshold of the "Age of Magic Money"
Emirates NBD said that the investment landscape has changed strategically, and today we stand at the threshold of the so-called "magic money era" that central banks created without any introduction to finance the increased government expenditures.
Warning that it carries long-term consequences, as sources of revenue become scarcer with lower expected levels;
It also does not protect against risks.
In response, we are working to include a higher proportion of emerging markets in the strategic investment mix.
Selectivity appears to be another response, as this year we strive to add more sustainability standards to our platform.
A bank report released today said that the year 2020 witnessed many unprecedented events in light of the terrible spread of the "Covid-19" pandemic, which dealt a painful blow to the entire global economy.
Fortunately, the responses were unprecedented, too.
Frontline workers fought valiantly, and those involved launched the first vaccines in history for the "Corona" virus within a very standard time frame.
He explained that the economic and monetary stimulus responses were unprecedented as well, and more effective with regard to investments.
Alone, the $ 10 trillion earmarked for the first months of the crisis was 3 times more than the total amount earmarked for tackling the major financial crisis.
On the fiscal front, governments spent huge sums to support the economy and avoid catastrophic damage.
But the total of this spending makes many historic initiatives such as the "Marshall Plan" appear modest, while the public deficit records a double-digit figure around the world.
On the monetary front, interest rates have fallen to unprecedented levels, and about 100 countries have resorted to some form of liquidity injection, which allowed an abundant amount of money.
These responses explain why 2020 has been a great year for financial markets.
These responses may seem far from the current devastation, but they are not so for a future recovery: the vaccine that has been developed supports recovery plans, especially if combined with financial incentives, while lower interest rates support the economic outlook.
On the tactical front, the report said the overall outlook is somewhat positive.
The year 2021 is expected to center around profit making in the fixed income market and raising capital in stocks that are recording strong earnings growth.
But the investment landscape has changed strategically.
Today, we stand on the threshold of the so-called "magic age of money" that central banks pioneered without any introduction to finance the increasing government expenditures.
It must be said that it carries long-term consequences, as sources of revenue become scarcer as expected levels fall;
It also does not protect against risks.
In response, we are working to include a higher proportion of emerging markets in the strategic investment mix.
Selectivity appears to be another response, as this year we strive to add more sustainability standards to our platform.
Let me close by talking about our performance in 2020, which is what every wealth manager must do with complete transparency.
We were wrong at first when we believed in February that the Corona virus was a temporary condition limited to the continent of Asia.
Weeks later, we managed to reduce the risks to the lowest level in our history, at a time when the markets were still maintaining positive levels since the beginning of the year.
We also revised our scenario and our fair values, repurchased aggressively in the midst of the March crash, and have maintained our investment ever since.
As a result, our three portfolios have yielded positive double-digit returns, which exceed our long-term allocations and outperform our international competitors.
In order to provide you with direct and fast access to these strategies, after 3 years of incubation, we also launched our multi-asset funds that we are proud to operate from Dubai.
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