Yarra Capital

Tweets aren’t policy, but Yarra Capital believes that financial markets are underestimating Trump’s intentions. Expect 2025 to be the year of higher debt, higher inflation and lower growth – not to mention plenty of volatility.

Fixed income has evolved tremendously over the decades, but one maxim Roy Keenan has stuck with has lost none of its utility; stick with a process that’s tried and tested, and you’ll keep things from falling apart.

The entrenched position of the banks and miners in the ASX 200 doesn’t necessarily correlate to inherent growth potential, especially with the issues both sectors face into. For investors, it may be worth considering an alternative path broad market exposure.

A higher for longer interest rate environment and likely default cycle in high yield means investment grade credit is once again in the hot seat.

“Some kids read cartoons,” the equities manager recalls, “and some read the sports section, but I used to read the stock market tables and try to figure out what was going up and what was going down.”

Inflation has likely peaked and the small cap market has bottomed out. The bad news is that relative returns have already started improving. The good news is that we’re still a few standard deviations from the mean, and there’s still plenty of upside.

Market neutral strategies should not only used as lever for investors that want an on-call safety valve for volatility, but retained as a strategic holding to drive portfolio performance throughout market seasonality according to Yarra Capital Management’s Andrew Smith.