Allianz Research

Allianz Global Wealth Report 2023:
The next chapter

2022 was a turning point, both politically and economically. Whether it also marked a turning point for financial assets will certainly only become clear in retrospect. 
Please note: in the event of discrepancies in calculations and figures, the most recently published value shall apply.

Cracking finance: Why the quantum threat could arrive before the reward

Most technologies create value before they create problems, but quantum computing may break that pattern. Imagine two clocks ticking side by side: one measures the time until quantum computers become economically useful, the other the time until they can break the cryptography that underpins the financial system. 

When bonds stop hedging equities: rethinking portfolio diversification

The 60/40 portfolio has quietly stopped working. The risk-adjusted return investors could reasonably expect from the standard balanced portfolio has fallen to roughly a third of its long-run level, from a Sharpe ratio of 0.47 to just 0.14.

The price of political fragility

Political fragility is now a key driver of European sovereign bond risk, particularly ahead of the 2027 elections in France and Italy. Since QE ended, it has significantly increased borrowing costs and could keep bond spreads elevated.