"The U.S. has advantages in growth, performance, and supply-demand…It’s not time to reduce allocation"

Russ Ivinjack AON Global CIO

"Inflation likely to be in the 2.5~3% range

Focus on infrastructure investment and private credit"

“You should not hastily reduce your allocation to U.S. investments.”

Russ Ivinjack, the Global Chief Investment Officer (CIO) of AON, a global pension consulting company, stated on the 15th, "The greatest risk is overreacting to short-term news and straying from long-term portfolio strategy." He added, “Although emerging markets including South Korea are showing strong performance this year outside of the U.S., U.S. investment should still remain at the core.”

CIO Ivinjack cited the structural strengths of the U.S. stock market as a backdrop. He explained, “The number of listed companies has declined to about 3,000, roughly half what it was 20 years ago, and as corporate share buybacks increase, the supply of stocks has decreased.” He further analyzed, “Meanwhile, the pension market continues to grow, so the demand for stocks is steadily increasing.” This indicates the U.S. market holds advantages over other countries in terms of growth and supply-demand factors.

He also made a positive outlook for tech stocks. “U.S. tech stocks have high profitability and rapid business expansion,” Ivinjack said. “Even if there are concerns about valuations (the price-to-earnings ratio), ultimately, earnings will justify stock prices.”

He also warned of the possibility that U.S. inflation could remain elevated beyond expectations. “Currently, inflation is based on the 2% range, but going forward, it may be maintained at the 2.5~3% level,” he said, suggesting, “We need to pay attention to alternative assets like infrastructure investment or private credit, which can yield returns even in a high interest rate environment.”

Reporter Suji Na suji@hankyung.com