On Balance
In Part I of the inquiry, I set out some of the structural problems that the Finance Industry is facing in the wake of the macroeconomic adjustments we experienced over the last 18 months or so and the impact that they have had on portfolio returns both in 2022 and in the future. In part II I take a closer look at the range of investment approaches – from passive to active currently being operated in the market and at the types of investment models underpinning them.
The latest signal / indicator to be added the Apollo EDGE platform has been the Investment Cycle which we discussed in an earlier comment – the ability to show the transition from Value to Re-rating to Growth and De-rating (the cycle) is proving very informative.
Yet again, the financial industry has had to start the year on the back foot. As lists of dramatic fund level underperformances circulate in the media, the explanations, rationalisations and justifications for failure are being delivered via fund reports and year ahead presentations.
The Federal reserve is now perceived to be of a Dovish disposition while the China Opening Up story is now prevalent. Risk assets are on the rise and Copper is back to $9000 / tonne. Maybe we should be buying commodity stocks and copper related names in particular. Antofagasta anyone?
Having announced the launch of the Apollo Investment Cycle some weeks ago, today we announced the actual launch of our proprietary Investment Cycle that allows an investor to understand and visualise as a stock, sector or market moves from De-rating to Value, to Re-rating, then Growth.