LWE - 17th Apr, 2021
Inside Morgan Stanley’s bullish bet on the recovery
In early 2020, Nathan Lim, head of wealth management research at Morgan Stanley Wealth Management, noticed a strange phenomena. Chinese New Year had just passed, but thermal coal consumption wasn't recovering as it normally does. This rang alarm bells, and Lim was soon warning clients that the economic cost of the coronavirus would be far greater than people appreciated.
Fast forward to a year later, and the world and the economy are entirely different places. Importantly for investors though, the cycle has been reset. Markets were already late-cycle going into 2020, but the economic upheaval of last year has brought spring time upon investors again.
"We think we are very much early cycle, and we think you should be adding risk to your portfolio."
In this episode of The Rules of Investing podcast, Lim details how and why it's time to add risk, explains their process for picking great fund managers, and he shares some of the managers they prefer for today's market conditions.
Time stamps:
- 1:50 - Nathan’s experiences and how they shaped his investment philosophy
- 4:45 - Insights into Eric Sprott, master of the market in Canada
- 6:14 - The roles of active and passive strategy within a portfolio
- 9:10 - Morgan Stanley’s process for selecting the right managers
- 14:00 - Big picture of the economy - where are we in the boom-bust cycle?
- 19:06 - How much risk they're carrying in portfolios today
- 22:45 - What are the biggest over and underweight allocations in the portfolio at the moment?
- 33:50 - Is globalisation dead?
- 37:00 - Where the best opportunities can be found
- 40:20 - Which managers and ETFs stand out?
- 44:00 - Nathan answers our three favourite questions
Specialist advice from Morgan Stanley
Morgan Stanley Australia focuses on providing individuals and institutions with specialist strategic advice and then helping implement these strategies through superior investment execution. For more of Nathan's insights, follow him here.
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The Rules of Investing is one of Australia's top investing podcasts. We interview the leading investment minds from Australia and overseas to better understand their processes and philosophy. After launching in October 2017, there have been over 150 episodes published - you can access all content on Livewire Markets, Spotify and Apple Podcasts.
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More from The Rules of Investing
To catch-up on previous episodes of the Rules of Investing, click here.
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- Why Ben Clark is taking profits on growth stocks (and where he's putting that money to work)
- The next 10 years in ETF growth could be dominated by this asset class
- Warryn Robertson's guide to picking the best infrastructure stocks on the ASX and abroad
1 contributor mentioned
Livewire Markets
The Rules of Investing is one of Australia's top investing podcasts. We interview the leading investment minds from Australia and overseas to better understand their processes and philosophy. After launching in October 2017, there have been over...
Livewire Markets
The Rules of Investing is one of Australia's top investing podcasts. We interview the leading investment minds from Australia and overseas to better understand their processes and philosophy. After launching in October 2017, there have been over...
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