The Economic Times daily newspaper is available online now.

    Infrastructure, green energy among themes to gain traction in 2023: Macquarie

    Synopsis

    There is a strong global appetite to invest in infrastructure, particularly renewable energy. Macquarie anticipates $2 trillion in global inflows over the next five years, given the thrust of several countries to drive significant climate policy initiatives.

    Infrastructure, green energy among themes to gain traction in 2023: MacquarieAP
    Even as it looks like the US Federal Reserve will take the slower path hereon to interest rate hikes, a recession in the world’s largest and second largest economies is imminent and is expected to remain through the first half of 2023.

    But the big disruptions of 2022 such as supply-side bottlenecks and inflation will stabilise. An improved economic landscape in the second half of 2023 is an expectation penned down by several economists.

    Expecting the same, Macquarie Asset Management believes investment themes across the following 4 major dimensions are likely to play out.

    • Alternatives must play an active role in portfolios.

    According to Macquarie, many individual investors under-allocate to private markets, thereby missing the opportunities to diversify and protect portfolios against inflation.

    • Infrastructure will lead investment priorities.

    There is a strong global appetite to invest in infrastructure, particularly renewable energy. Macquarie anticipates $2 trillion in global inflows over the next five years, given the thrust of several countries to drive significant climate policy initiatives.

    • Energy security and carbon reduction to go hand-in-hand

    For years, the argument was energy security and sustainability cannot go hand-in-hand. But now, it is seen that these two priorities must be met simultaneously, often in concert with each other. And this has resulted in tremendous opportunities in green energy.

    • Yield has returned.

    After more than a decade of next-to-zero yields for all but the riskiest fixed income securities, there’s now an array of attractive risk-adjusted return opportunities. However, serious risks must be considered, including the risks of recession, rising unemployment, monetary policy, and other geopolitical developments that will continue to impact portfolios.

    “In the current market environment, at least for those who aren’t willing to lock up all their money longer-term, we consider that most investors should be planning to keep a substantial role for equities in their portfolios during 2023,” Ben Way, group head at Macquarie Asset Management, said in his report.

    (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)



    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more


    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
    The Economic Times

    Stories you might be interested in