After the wild ride in global financial markets over the past several months, there is considerable uncertainty about prospects going forward. Such sentiment has been the case for much of the current decade, because the environment has been unusual on so many fronts – economic, policy and market trends. Lacking a roadmap, most investors’ time horizons seem to have shrunk to the very short term, reflecting a low conviction in how the future may unfold.
Our research team recently focused on the High-Conviction Multi-Year Portfolio. We also examined the outlook beyond the current cycle, and how it might unfold based on developing trends and themes that we have identified. Our main conclusion was that the next global recession would likely witness a major reset of investor expectations and kickstart several multi-year asset price trends. To this end, there are a number of multi-year recommendations, several of which can either be acted upon now, or at least gradually augmented in the coming year or two.