What is The Energy Transition
” We believe that many of the ‘big winners’ in the years to come will be those offering climate change solutions – products and solutions which decarbonise our economies. ” The energy transition broadly refers to the scaling down of fossil fuel drive energy production towards alternative means of providing energy, from renewables such as […]
‘Quality’ ETF’s Have Unique Sensitivities To The Business Cycle
Since we have heard a lot of talk about investing in ‘quality’ lately from active managers and many rules-based ‘quality’ ETFs have been launched over the last decade as well, I thought it would be interesting to analyse the largest and most popular quality UCITS ETFs just as Parala does when selecting ETFs for its […]
Rethinking Asset Allocation
ALPHAPREDICTOR STRATEGIES: RETHINKING ASSET ALLOCATION In a financial world where change is the only constant, some of the tried-and-true principles of asset allocation are ripe for reassessment. This is especially true for strategies aimed at capturing long-term expected risk premiums and those predicated on dynamic allocation strategies. Recent performance data underscores this point. For instance, […]
Alphapredictor® Indices
A Risk Targeted Approach to Multi-Asset with the AlphaPredictor Target Risk Indices Multi-asset strategies continue to dominate investor flows in recent years, given their ‘plug and play’ solution to diversification. However, the approaches are often inconsistent over time, subject to manager discretion and not necessarily comparable even within certain risk profiles such as the ‘cautious’ […]
MPS Bulletin: The Virtue of a Proportionate Response
Whilst Donald Trump may not be well versed in the treaties of David Ricardo, and all the benefits that are bestowed when the law of comparative advantage takes form in a globalised manufacturing model, he does seem to be familiar with Sun Tzu’s counsel. ‘The best battles are those never fought’, as the Confucian doctrine […]
MPS Bulletin: Deep Heat
AI stocks have received something of a bloody nose, as the Chinese upstart DeepSeek has led investors to question whether the US hyperscalers’ plans to invest 270bn USD this year into AI alone, is money well spent. Having already received the thumbs up from legendary VC and tech investor Marc Andreessen, of the eponymous Andreessen […]
MPS Update: Superficially Sentient and the Magnificent Bribe
In a remarkably prescient piece, the social critic Earnest Mumford in ‘Technics and the Nature of Man’, unnervingly anticipates a scenario which could easily pass for today, over half a century ago – long before smart phones or CoPilot. Whilst lengthy, it is worth reproducing some of his sentiments; The last century, we all realise, […]
MPS Bulletin: Santa Falls
As widely anticipated, the Federal Reserve reduced the official interest rate by 0.25% in the last meeting on the year. What was perhaps less widely anticipated was the market reaction, a historic sell off by some measures, in response to Jerome Powell’s determinedly ‘hawkish nature’. Financial markets had been pricing in 4 interest rate cuts […]
MPS Bulletin: The Bull Market nobody is talking about
Often described as a chameleon asset, (one whose performance can be influenced by ever changing causal factors), bullion has quietly been grinding higher without seemingly attracting much by way of headlines. In fact, having passed 2500 USD for the first time in history, in a resurgent fashion, we’re a little bemused it hasn’t garnered more […]
Asset Allocation Bulletin – Starting Gun
This was one of Lenin’s weeks – when a decade’s worth of events all fell upon one unsuspecting row on the calendar. An attempted assassination of a presidential candidate, and then the President himself taking a fall. What are the likely stock market consequences? BIDEN BOWS OUT President Biden is withdrawing himself from the 2024 […]