FIND A FUND
ASSET CLASS
PRODUCT RANGE
iShares ETF explained
Capital at risk. The value of investments and the income from them can fall as well as rise and are not guaranteed. Investors may not get back the amount originally invested.
The risk of recession has increased significantly in the near-term with the coronavirus-related shock and, amid heightened market volatility, investors have been looking for ways to build defence in their portfolios. Below, we break down two scenarios for economic shock: growth slowdown and stagflation.
Expand the sections below to find out which asset classes may outperform and which may underperform in the growth slowdown and stagflation scenarios.
Outperform:
Quality, Gold, Defensives (minimum volatility, utilities), FX hedged range, Safe-haven single countries (e.g. Switzerland, Japan), Property
Underperform:
Cyclicals (e.g. financials and energy), Emerging market equities
Outperform:
Ultrashort, Short duration, Short duration high yield, Inflation linkers, Floating rate notes
Underperform:
Duration (also term structure plays), Spreads (investment grade, high yield)
Outperform:
Gold
Underperform:
Oil
Outperform:
Volatility hedges (pockets of volatility that haven't been bid up)
Outperform:
Defensives (Utilities, dividend growers, minimum volatility), Safe-haven single countries (e.g. Switzerland, Japan)
Underperform:
Cyclicals (e.g. financials and energy), Value, momentum
Outperform:
Duration (also term structure plays), Inflation linkers, Government bonds
Underperform:
Spreads (investment grade, high yield), Short duration
Outperform:
Gold
Underperform:
Metals, Oil, Physical infrastructure
Outperform:
Volatility hedges (pockets of volatility that haven't been bid up)
Source: RQA stress test conducted across full iShares product offering, Sep 2019
Read our full views on 2020, including implementation ideas.
In our latest iShares outlook webinar, we discuss investment opportunities for 2020.
We explore the case for why investors could consider gold and silver.
This material is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any financial instrument or product or to adopt any investment strategy.