What Wealth Management Advisors Are Predicting for 2024
According to a study by Principal Asset Management, French independent financial advisors identify moderate global growth and geopolitical turmoil as the main risks to portfolios in France over the coming months.
The survey of 100 wealth managers reveals that 67% view these factors as key risks, with concerns also being raised about a global recession (65%).
In this context, French portfolio managers plan to maintain rather than adjust their current allocations across most asset classes. However, they plan to reduce their allocations to high-quality credit by 45% and increase their allocations to high-yield credit by 28%, while reducing their exposure to U.S. and European stocks.
According to Seema Shah of Principal Asset Management, French advisors see attractive opportunities in high-yield credit in 2024, while noting that France has the potential to offer risk-adjusted returns in the real estate sector despite global uncertainties.
The study also reveals that French advisors have a strong preference for domestic real estate investments, citing France as offering the most attractive opportunities (88%). Real estate subsectors such as logistics, mixed-use, healthcare, and industrial are identified as offering attractive returns by 28% of respondents, reflecting a diversified approach compared to other European markets.
While the study highlights the challenges and opportunities facing French investors, it emphasizes above all the need for a diversified asset allocation in a challenging market environment.
