Răzvan Paşol, Patria Asset Management: "We must have a very good allocation of savings by asset class"

Investors must have an allocation of savings by asset class that allows them both to benefit from growth and to provide them with a certain peace of mind during periods of falling markets, says Răzvan Paşol, CFA, Director General of Patria Asset Management.

The analyst stated: "In times of decline in the stock market, an investor in equity funds should not do anything different than what he was doing before. History has shown that over longer periods of time, three, five or ten years, all declines in stocks have been recovered and overcome. In the long term, the performance of equity funds is positive, so we must try not to panic (n.e. when the markets fall). It is not simple and we need to have a very good allocation of savings across asset classes. No one should recommend investing all the money we have in a stock fund, but only a part that will give us a certain performance of those savings, but which will also give us a certain comfort, that is, to be able to sleep quiet the night when stocks are down. Once this asset allocation is achieved, we need to take a long-term view and make regular investments to perform in line with economic growth and expectations."

Regarding the prospects for the last part of 2024 and next year, Răzvan Paşol said: "It is difficult to make estimates, especially in the short term. The coming year is likely to be more turbulent than recent years, seeing more volatility and periods of decline. We focus on ETF-type funds, which have a passive investment strategy. ETFs replicate BSE indices, so we don't try to predict what the economy or the stock market will do, which is very difficult."

General Manager of Patria Asset Management pointed out that he expects tax increases, certain fiscal measures that will have a negative impact on the economy, but that he cannot estimate to what extent, during what period and how these things will affect the prices of shares and funds that invest in shares.

"We see a slowdown in economic growth, which certainly does not make us happy. In Romania we have the problem of the deficit (budgetary n.r.) and we will probably see the bill next year. But as investors in equity funds, I think that we should not try to anticipate what the economies and markets will do, but I think that we should remain long-term investors", stated Răzvan Paşol.