Fixed Income:
Look beyond equities for greens

How can you find growth in times of panic? Difficult markets are not to be feared. Investors need an optimistic resolve and a clear roadmap: identify businesses with sustainable and predictable earnings streams, pricing power, and lower leverage, and avoid stocks trading at exorbitant multiples that are vulnerable to higher discount rates.

In 2021, Asian internet stocks, dragged down by Chinese blue chips, massively underperformed their US peers. But the valuation chasm between Asia and the US has narrowed of late. With Chinese regulators easing their grip, the country’s internet stocks may be bottoming out, which could be an opportunity for able stock pickers.

Credit Analyst Jim Stahl tunes into the US radio industry and explains why radio is experiencing a resurgence thanks to digital marketing and podcasting.

The lockdown in Shanghai is sending shockwaves through markets while the Chinese government is trying to handle the health crisis without losing face. Still, things seem to have stabilized, and there are hopes that the leadership will crank up the economy. Markets would benefit, and so could stock pickers, according to our mtx equity experts.

Opportunities to generate alpha are abundant in emerging market corporate bonds, according to Head of EM Corporates, Wouter van Overfelt.

Like the end of a long evening of revelry, the decline in the fortunes of momentum growth and value companies leaves the Quality Growth investors, in our opinion – still standing. Companies with pricing power, low debt, and consistent earnings may be the slow but steady winners in the race to beat the market.

Bear markets do not send advance warnings. But investors can pay attention to red flags. Valuation multiples are well above the long-term average and consensus estimates are bullish on earnings growth. The good news is that investors can prepare for macro uncertainty and minimize capital loss.

Global bond markets have moved sharply in the wake of Russia’s invasion of Ukraine as investors have tried to assess the impact of an unprecedented raft of financial and economic sanctions.

For our Q1 fixed income event, Mark Holman, portfolio manager at Vontobel boutique TwentyFour Asset Management, provided an update on the firm’s flagship, global unconstrained strategy, the Vontobel Fund – TwentyFour Strategic Income Fund.