The ongoing conflict in the Middle East that has blocked the Strait of Hormuz and caused huge economic shockwaves around the world could see some mid-term strategic choices made around portfolios.
One of the main areas this could affect is growth assets. Growth assets are investments aimed at increasing the initial capital value over the medium-to-long term, rather than providing regular income.
These assets carry higher risk and volatility but offer potential for higher returns compared to defensive assets.
There could be big changes due to this, which industry experts think will see more emphasis on private credit – and a change in how certain aspects of the renewable energy sector are handled.
It’s this second area that could see the most important and long-term changes.
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