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A Conversation with John Koudounis, President & CEO of Calamos Investments and Member of Concordia’s Leadership Council

SpeakerS:

John Koudounis, President & Chief Executive Officer, Calamos Investments
Laila Maidan, Investing Correspondent, Business Insider

With Principal Programming Sponsor

“Everything we do, of course, we're client-centric. We focus on innovation and risk management.” John Koudounis

Key takeaways:

  • Market volatility expected amid political uncertainty: The market reacts differently depending on the administration’s policies. Investors should anticipate increased volatility during election seasons due to potential policy shifts and uncertainty. 
  • Structured ETFs provide risk management for retail investors: Structured ETFs offering principal protection on the downside while capping the upside allow investors to participate in equity gains with minimized risk. These products are especially beneficial in volatile times and are now accessible to retail investors. 
  • Democratization of sophisticated investment strategies: Investment products traditionally available only to high-net-worth individuals are now accessible to the general public through ETFs. This shift enables everyday investors to hedge their portfolios and manage risks more effectively. 
  • Growth of sustainable and ESG investing: Sustainable investing is gaining momentum, with funds focusing on ESG criteria outperforming traditional indices like the S&P 500. Partnerships emphasizing shared values in sustainability highlight the importance of ESG considerations in investment decisions. 
  • Challenges in retirement planning: Investors approaching retirement face challenges due to lower returns from traditional fixed-income products, especially in low-interest-rate environments. There’s a need for investment options that offer better yields while managing risk. 
  • Impact of monetary policy and interest rates: The timing and magnitude of interest rate cuts by the Federal Reserve significantly impact the economy and investor confidence. Delays or politically influenced decisions may not effectively stimulate economic growth as intended. 

 

Action items:

  • Prepare for anticipated market volatility: Review and adjust investment portfolios to mitigate potential risks associated with political and economic uncertainties, particularly during election periods. 
  • Explore structured investment products: Consider incorporating structured ETFs into investment strategies to benefit from equity market gains while protecting against downside risks. 
  • Embrace sustainable investing: Integrate ESG criteria into investment decisions to potentially enhance portfolio performance and promote positive environmental and social impact. 
  • Diversify retirement portfolios beyond traditional fixed income: Seek diversified investment options that balance the need for income generation with capital preservation, exploring alternatives to conventional fixed-income assets. 
  • Stay informed on federal reserve policies: Monitor actions by the Federal Reserve and understand how changes in interest rates may affect various asset classes to make informed investment decisions.
  • Leverage newly accessible investment strategies: Utilize investment products that offer sophisticated strategies previously limited to institutional or high-net-worth investors, enhancing portfolio risk management and return potential.

 

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