Understanding Investment Blueprint

A 'barbell' portfolio strategy helps you build a resilient investment portfolio in challenging times. This strategy can lead to superior returns from long-term, irreversible growth trends on one hand, whilst generating stable income on the other hand to mitigate short-term market dynamics.

It's very important to know the state of the economy before you buy into stocks or bonds. Look for the champions, which company who will rise in the new landscape of this changing world. Invest in secular and long-term irreversible trend, like the transition to digital economy and also ageing population, and look for companies that will benefit from that trend.

Interest rates is a strong driver for financial markets because it’s a measure of the cost of funds or the cost of borrowing. The interest rates go up because the central bank is raising rates in anticipation for higher inflation. Then the cost of borrowing for the companies will go up and that normally would have a drag on the stock market performances. The terms “Hawkish” and “Dovish” related to central bank’s policy. When a central bank is raising interest rates because inflation is an issue, we call that central bank hawkish and on the contrary when interest rates are being cut, we say the central bank is dovish. In the environment of low interest rates and in some regions of the world rates are zero or even negative, the next bond proxy would be dividend yielding stocks.