The war games are back, but the Hungarian professionals are still taking risks.
In July, investors faced difficult decisions again, as the Iranian conflict, uncertainty around the Strait of Hormuz, and rising energy prices increased inflationary fears. The stock market experienced intense rotation, while bond yields rose. The euphoria surrounding Hungarian assets decreased, but local fund managers did not move to a defensive position, and the weighting of Hungarian assets increased to 60.3%.
In July, investors had to make decisions in a tense market environment: the renewed conflict in Iran, the uncertainty surrounding the Strait of Hormuz, and rising energy prices reignited inflationary fears, while the winners of the previous AI rally were under significant pressure. Intense rotation was taking place beneath the surface of the stock market, with bond yields rising again, and the euphoria surrounding Hungarian assets was starting to fade. Despite this, local fund managers did not significantly shift to a defensive strategy: they increased the weighting of money market instruments in their portfolio, while bond, stock, and alternative exposure also increased slightly. Confidence in the Hungarian forint has returned: portfolio managers now recommend exposure to the forint with an average of 60.3%.
