Natixis highlights complacency as the biggest risk in the annual survey, with a laissez-faire market sentiment weighing most heavily on its experts’ minds. Covid-19-related worries of new variants and low vaccine participation, while timely, were viewed as lower-risk factors compared to inflation and geopolitical risks.
Even as the global economy staggers towards reopening, the biggest risk facing investors is not the threat of inflation, but complacency.
Many economies are still shut, and will remain so for another six to nine months, says the majority of a panel of 42 portfolio managers, strategists and economists in Natixis Investment Managers’ mid-year survey. With lockdown restrictions pulling the brakes on economies every few months, investors could risk getting too comfortable, riding on market optimism for a “post-pandemic world” that, so far, has only existed on paper, says Natixis.
