The prevailing market dynamic has changed, with inflation fanning volatility and bonds no longer providing diversification ballast against equities. Active managers that have been employing alternatives for years are well placed to accommodate the new paradigm.
Technology stocks at the big end of the S&P500 have enjoyed a (mostly) golden run, but Atrium Investment’s Brendan Paul warns that Nvidia’s astronomical valuation may have tipped the balance.
Money might not be free anymore but there’s still plenty of it sloshing around in markets and the economy. When it runs out, the resulting upheaval (and higher inflation) could herald the return of active management.
Markets may not always do what’s expected, but fundamental valuations and adherence to timelines will usually win out eventually according to Atrium Investment Management.
