Investment Strategies That Use Systemic Research - An Example Of Technology Affecting Business

*By Chris Illing - Honorary Consul of the Federal Republic of Germany in The Bahamas at ActivTrades, Promoters of Market Democracy

To take advantage of today’s volatile markets, HNWs can rely on state-of-the-art trading platforms. In these, The Bahamas excels.

ho would have thought that when the Corona pandemic subsided, we would fall into the next crisis mode? The Ukraine conflict has shaken the global community to its core and has brought the most violent atrocities of war back onto the map of Europe. The associated increase in energy prices is partly responsible for the return of inflation, which we thought was dead, and which is still on our minds to this day.

Systemic research is one answer to the problem. It involves an analysis of the interconnected relationships between different factors such as economic trends, industry performance, market conditions and government policies. By looking at the larger picture, the educated investor can gain a deeper understanding of the risks and opportunities that the different markets and industries face and develop his or her investment strategy. Investment strategies that are formed through systemic research can help the HNW retail investor make better-informed decisions by considering the broader economic and social context in which companies operate.

WEvery investor in the financial markets – whether private or institutional – is confronted with an unmanageable amount of information. With a realistic self-assessment, he quickly realizes that he cannot process and condense this wealth of information to make successful investments on his own. If he wishes to understand what is driving the performance of a portfolio, it makes sense to look at the factors and their application.

If The Investor Assesses Himself

The investor can use a wide variety of factors as filters to screen available company and price data to look for markets in which to invest. Systematic investing is an approach that emphasizes data-driven insights, scientific testing and disciplined portfolio construction techniques on the hunt for varied portfolio outcomes.

The mid-cycle environment in which we find ourselves still offers a positive environment for riskier investments and HNWIs with moderate risk appetites remain invested. The exact rate of inflation and growth is unknown and probably will remain a controversial topic in the coming months; volatility can be expected to persist. Diversification remains the key to the construction of more robust portfolios. For this purpose, investors might also consider the partial allocation of their investment portfolios into hedge funds.

WHAT DOES THE IMMEDIATE FUTURE HOLD?

Technology is one major factor that affects businesses. The ways in which companies communicate, operate and compete in the different markets is changing. One example of this is the rise of digital payment systems and E-commerce platforms. With their introduction, companies can now reach new clients and new areas worldwide. At the same time, advances in Artificial Intelligence (AI) and machine learning are allowing companies to gain new insights into customers’ preferences and behaviours. This leads to targeted and more personalized marketing strategies.

Aside from macroeconomic trends, a variety of factors is driving general asset allocation. The fiscal priorities of individual states are likely to centre around investments in infrastructure. Investors should keep the fields of biotechnology, artificial intelligence and equipment under careful observation.

However, in 2023 and beyond, the topic of environmental sustainability will probably dominate some investment strategies. The earth