Why stock prices and bonds look good for investors right now, a Chief Investment Officer explains

Investors are currently in an unusual position. There are many concerns about everything from politics to war and the health of the major economies, yet the global stock market is high on the agenda

However, dig a little deeper and there are also concerns as returns increasingly focus on the US stock market’s dominant Magnificent Seven.

“There are a lot of risks, but when things seem risky, they usually lead to opportunities,” said Tom Becket, co-chief investment officer of Cannacord Wealth.

He joins This is Money’s Simon Lambert on the Investing Show to explain how he builds portfolios to protect investors from the risks and help them take advantage of those opportunities.

Becket says investors are right to be wary, but they also risk being too pessimistic and that, apart from some highly valued parts of the market, share prices largely look attractive.

He says investors should also look at bonds now that interest rates have returned to more normal levels.

He says: ‘Everyone says you have a long-term horizon, that you should just own shares. That’s a vision, but I think at the moment you can probably get a similar return from fixed income as from equities.’

Becket also explains what the work of a Chief Investment Officer entails and what he believes investors should consider about their own portfolios, ambitions and returns.

He says, “Ultimately, I believe inflation is the best arbiter of investment success. Generating returns above inflation should be your ultimate guide to investment success.

‘It’s all about the concept of generating real returns. I would suggest this would be the starting point for anyone thinking about investing in the future.”