CIO Insights 3Q24: Risk Assets in Play

Описание: Since the start of this year, our call for portfolios to engage with risk assets has paid off as reflected in the continued run in equities and the compression of credit spreads.

We see a Goldilocks economy panning out in the US – not too hot, not too cold. In other words, a soft landing with tapering growth and inflation that will lead to the Fed gradually cutting rates. Looking at past cycles, such a trajectory in interest rates had led to a bullish trend that persisted for longer.

Hence, we continue to advocate for excess cash to be deployed in well balanced portfolios comprising public equities, bonds and alternative asset classes.
Stay with quality companies with deep moats for equities, investment[1]grade with longer duration for bonds, and overweight gold and alternatives like private assets.
Such a portfolio construct will demonstrate superior risk-reward over market cycles, while harnessing “risk premiums”, or incremental returns over cash.

In this publication, we highlight a new investment theme: “New frontiers in space”.
Commercialising spaceflight might sound new-fangled, but the theme is a natural extension of the rapid innovation behind Big Tech’s market gains in recent years.
It is not difficult, for instance, to chart a path between Tesla’s semiautonomous vehicles to SpaceX’s reusable rockets.