Quality currencies can potentially diversify against growth risk

While government bonds have historically been considered effective diversifiers against growth, Invesco Fixed Income believes it makes sense to consider “quality currencies” as an alternative diversifier.

In the past, government bonds have typically performed well when risky assets, like stocks, have performed poorly. However, this negative correlation cannot be relied upon; there have also been periods when stocks and bonds have both performed poorly.

Invesco Fixed Income has observed that that adding “quality currencies” to credit portfolios can potentially help investors diversify against growth-related risk.

Download our paper on quality currencies

Important information

The value of investments and any income will fluctuate (this may partly be the result of exchange rate fluctuations) and investors may not get back the full amount invested.

Where Ray Uy and James Ong have expressed opinions, they are based on current market conditions and are subject to change without notice. These opinions may differ from those of other Invesco investment professionals.