Odd Lots Luke Kawa on the Macro Situation Right Now
Mar 22, 2021
Luke Kawa, an Asset Allocation Strategist at UBS Asset Management, delves into the current macroeconomic landscape shaped by vaccine rollouts and fiscal stimulus. He discusses the challenges of adapting traditional investment models like the 60-40 portfolio amid rising rates. Kawa also explores the expected economic growth driven by a recovering economy and highlights the significance of U.S. and Chinese bonds in investment strategies. The conversation touches on the impact of retail investors and the need for a global outlook in asset management.
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Investing Approach
- Consider underlying macro themes to identify convex opportunities.
- Prioritize accuracy and asymmetry when investing.
Finding Opportunities
- Look for undervalued assets with a catalyst for valuation gap closure.
- Combine valuation and catalyst for best investment thesis expression.
Value vs. Growth
- Value stock earnings are expected to grow faster than growth stocks.
- This shift is driven by vaccinations and fiscal stimulus, not just rates.