LONG TERM INVESTMENTS AND PORTFOLIOS
Current investment horizon
Tradex’ Investment Approach is about accepting the realities of today’s world and at the same time recognizing the major shifts taking place over several years that transform life as we know it. Confronted with an investment horizon increasingly led by politics for example, and a longer-term transition into all things digital, traditional asset allocation no longer works and a greater dose of patience to ride out volatility is needed.
Accepting given fundamentals and adopting the relevant investment style
In keeping with today’s investment horizon, Tradex adopts a forward-looking investment style that is actively managed by keeping an ear to the ground, dissecting the facts and decisively taking calculated risks to generate enhanced returns over the longer term. While stocks, bonds and cash remain important in the portfolio, we attribute a greater focus to alternative investments such as financial derivatives, private equity and hedge funds, to take advantage of both current fundamentals and decade-long economic developments.
We consider the following as today’s key market drivers:
- Income gap – growing globally due to technology and misguided government policies
- Digital disruption – Jobs threatened, deflation and winner take all economy
- Interest rates – Zero to negative
- Political dominance – Increasingly dominating the economy e.g. managed deleveraging mitigating deflationary pressures
- Tight regulation – excess regulation restricting growth and creativity
- Structural issues – e.g. euro imbalances
Market patterns and positioning
Watching for clues in markets and being able to act decisively takes skill. We pride ourselves on our ability to assertively reallocate investments based on our deep understanding of market behavior and self-confidence to routinely reinvest returns to generate greater earnings. Markets typically fall into one of four scenarios (shown below) and at any point in time Tradex understands what is driving markets. Through active asset allocation, we take advantage of investment opportunities when they arise, thereby potentially enhancing client investment returns.