In this fortnightly report we provide insights into risk management of an equity portfolio.
We detail global macro conditions (in pictures) with key upcoming data releases with market pricing of outcomes based upon the flow of money. Increased volatility is often experience around key data releases relating to interest rates, growht, inflation rates, and key political events. These dates are detailed in the report, along with market pricing of likely outcomes where available.
Our investment view is that interest rates will stay low for an extended period, and stock market volatility will increase.
With this view, traditional investment approaches are ill-equipped for today's climate. The traditional portfolio approach is to blend 'income' and 'growth' assets, which will produce portfolios with insufficient income and substantial fluctuations in capital value.
There is a need for risk managed investments in growth assets. Our unique approach is always a 'hockey stick' pay off profile, to participate in the upside with minimal capital at risk.