With the economy chugging along nicely, and equity markets grinding higher, it’s been pretty smooth sailing for investors in recent years. But there’s one important risk that has the potential to derail the rally: President Trump. Though the potential problems are well known by markets, Troy Angus, Head of Large Caps at Paradice Investment Management, believes there’s a real risk that tariffs could have a significant effect on the economy.
“The first-order impact to global GDP are likely 0.5-0.6% of global GDP... It’s really the second or third order impact from those tariffs… is one of the biggest risks for Australian and global equities.”
In the short video below, Troy discusses how he’s positioning for the current investment environment.
The Paradice Australian Large Cap Strategy does not bias value or growth but ensures the fund buys stocks that are cheaper than the market relative to their growth profile. Find out more