TOL - 26th Aug, 2023
3 reasons why the US economy has achieved a miraculous "soft landing"
KKR's Frances Lim tells us why she's bullish amid today's volatility, and where she sees the best value
Ten years ago, investing was an easy game. Thanks to rates near zero and reckless fiscal spending, markets were drunk on liquidity.
There was multiple expansion across the board, and winning was relatively easy. Pick an index, sit back and let multiple expansion take care of the rest.
Today’s reality is far different. Volatility is high, correlations are weak, and the once reliable 60/40 portfolio is, well, not so reliable.
In this episode of The Rules of Investing, I sit down with Frances Lim, Managing Director and Head of Asia Pacific Macro at KKR.
She strikes a refreshingly positive tone on the market today, pointing out that wages, nominal GDP and earnings are all above trend.
Frances gives us a full macro appraisal of US and Asian markets, the state of China, how she views investing in 2023, and where she’s finding value in the market.
Note: This interview was recorded on August 22, 2023.
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Timestamps
0:00 - START
1:50 - Soft landing?
4:20 - A great setup for companies
7:17 - The health of corporate America
10:17 - What's happening in China?
14:00 - China's trickle-down economics
19:00 - Correlations in trouble
23:10 - Time for a 60/30/30 portfolio
24:27 - The best risk-adjusted return
27:40 - Is passive investing enough?
29:40 - The role of thematic investing
31:30 - How active should active investors be?
32:40 - The best opportunities in Asia right now
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The Rules of Investing is one of Australia's top investing podcasts. We interview the leading investment minds from Australia and overseas to better understand their processes and philosophy. After launching in October 2017, there have been over 150 episodes published - you can access all content on Livewire Markets, Spotify and Apple Podcasts.
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Livewire Markets
The Rules of Investing is one of Australia's top investing podcasts. We interview the leading investment minds from Australia and overseas to better understand their processes and philosophy. After launching in October 2017, there have been over...
Livewire Markets
The Rules of Investing is one of Australia's top investing podcasts. We interview the leading investment minds from Australia and overseas to better understand their processes and philosophy. After launching in October 2017, there have been over...
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