Positioning for the unexpected
When market consensus is heavily positioned for one outcome, it pays to evaluate the exact opposite occurring.
Consider inflation. It has been drifting down in Australia over the last fifteen years, and is now as 1%. Consensus is for lower inflation.
Nader Naeimi, Head of Dynamic Markets,and Portfolio Manager of AMP Capital’s new Active ETF, the Dynamic Markets Fund (Hedge Fund) ASX Code: DMKT, told Livewire: “When putting a portfolio together, expectations play a big part. Inflation expectations are so low now. Falling a little bit more would be no surprise, but – what would be a surprise would be inflation going higher.”
In this video he discusses a commodities strategy that offers diversification if inflation were to surprise to the upside, as well as an overview on what to expect from the rest of the commodity complex.
This video is part of a series of videos. You can watch the other videos in the series here:
Australia's banks three times more expensive than Europe's
Where would you invest and what is the biggest opportunity?
Buy from the pessimists and sell to the optimists
About the author
Nader Naeimi, Head of Dynamic Markets at AMP Capital. He is also the portfolio manager of the Dynamic Markets Fund.
Access up to 80 global opportunities in a single trade
In a world where market volatility and low growth are the new norm, asset allocation is more important than ever. However accessing asset classes globally and outside of the usual places in order to do this is difficult.
AMP Capital’s Dynamic Markets Fund (Hedge Fund) ASX Code: DMKT, an Active ETF, offers a low cost solution to global portfolio diversification with a real return objective.