Platinum: 3 strategies that work in a low-rate environment

Livewire Equities

Livewire

Following Andrew Clifford’s macro overview, which showed why rates would be low for a long time, Clay Smolinski, Portfolio Manager at Platinum Asset Management, takes lessons from their experiences investing in Japan to present three strategies that do well in this environment, and one that doesn’t. 1) “Growth – Japanese investors became very enthusiastic for stocks that showed growth and would often bid them up to very high valuation levels.” 2) “Dividend yields – back-testing by Credit Suisse shows that consistent superior returns could be obtained in Japan by investing in the top quintile (i.e. the top 20%) of stocks with the highest dividend yields within sectors.” 3) “Contrarian investing – Credit Suisse’s back-testing also suggests that paying attention to value and going against the crowd had substantial rewards. Buying the cheapest quintile of stocks across sectors based on the price–to-book ratio was more successful in Japan than elsewhere.” Read the full article to find which popular strategy doesn't work well: (VIEW LINK)


Livewire Equities
Livewire Equities
Livewire

The Livewire Equities feed brings you a range of insights that relate to Australian equities

Expertise

No areas of expertise

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.