Opportunities at the market crossroads

Livewire Exclusive

Livewire Markets

Equities are in the late stages of a near-record bull-market, and rates are once again heading up. In this exclusive interview, Arik Star, Portfolio Manager, Ellerston Global Investments, identifies the key risks in this environment. He also points out that in any given year there will be stocks that have risen as much as 100%, and that there are always opportunities in the market.

 

“We are late stage in the bull market. We are in the 9th year, and no post-World War Two bull market has made it to its 10th birthday… We are mindful of these things. But - we are also focused on finding the next great opportunity.”

Key points

  • Markets are at a crossroads. Rates have been at abnormally low levels for 8 years. They are definitely moving up particularly in the US … the question is what will be the velocity of that move.
  • Volatility at the lowest level its ever been. The short VIX ETF is used to bet on volatility going lower (from all time lows) is the 34th most traded security globally.
  • We are in the 9th year of a bull-market, and no post-World War Two bull market has made it to its 10th birthday…
  • However - there is always opportunity. At the end of any year, we’re always going to see companies that have gone up 10, 20, 50, or even 100% in value 

About Ellerston Global Investments (ASX:EGI)

Ellerston Global Investments (ASX:EGI) is a concentrated global mid/small cap portfolio based on high conviction best ideas which is benchmark independent. Providing true diversification to investor’s global equity portfolios. Find out more here.


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