The asset management website Investment Officer (formerly Fondsnieuws) spoke with Stoic partner Freddy Forger about the current dire situation in the financial markets. As the article's title makes clear, Freddy offers his frank opinion: "The search for yield is absolute madness."
The article addresses the turbulent situation in the world of asset management. The situation is clear: for asset managers, a portfolio consisting of 60% equities and 40% bonds has been considered "neutral" and therefore "relatively safe" for years. After all, if stock prices fall, the associated losses are mitigated by the 40% bond portion. However, in 2022, we're seeing both equities and bonds fall. Ouch. This is why many managers are now searching for what to invest in. According to Stoic partner Freddy Forger, however, this search is "absolute madness."
Freddy obviously has a (very) good reason for this spicy statement: read the full article (in Dutch) here on investmentofficer.nl (article is behind a paywall).
Door Freddy Forger