The Necessity of Thinking Beyond the MSCI World
Philipp Vorndran, partner at Flossbach von Storch, emphasizes the importance of looking beyond the MSCI World when investing. According to Vorndran, the loss of trust in government institutions and their bonds is significant and could lead to a break in the bond market. Additionally, global geopolitical tensions, particularly Europe’s position between the major powers of the USA and China/Russia, may necessitate portfolio diversification.
Strategic Decisions for 2025
Vorndran proposes several strategies for successful investing in 2025:
- Diversification and Quality: Investments should be made in stocks of companies that do not strongly depend on the global economy. He also recommends keeping part of the portfolio in cash to respond to future market opportunities.
- Strategic Investment Outlook: An adaptable worldview that reflects the key influences on the markets is essential. This should be regularly reviewed and updated.
- Five Principles: Diversification, quality, flexibility, solvency, and value are the pillars of a successful investment strategy.
- Alternative Investments: Investments in real estate and gold are also recommended as protection against inflation.
Future Prospects and Challenges
Vorndran warns of a potential collapse of the traditional financial system, which may require adjustments in investment strategies. Young savers could benefit from these changes, as they have the opportunity to invest long-term.
In summary, Vorndran stresses the importance of flexibility, diversification, and quality in a rapidly changing market environment.