Inside Morgan Stanley’s bullish bet on the recovery

The Rules of Investing

Livewire Markets

In early 2020, Nathan Lim, head of wealth management research at Morgan Stanley Wealth Management, noticed a strange phenomena. Chinese New Year had just passed, but thermal coal consumption wasn't recovering as it normally does. This rang alarm bells, and Lim was soon warning clients that the economic cost of the coronavirus would be far greater than people appreciated.

Fast forward to a year later, and the world and the economy are entirely different places. Importantly for investors though, the cycle has been reset. Markets were already late-cycle going into 2020, but the economic upheaval of last year has brought spring time upon investors again.

"We think we are very much early cycle, and we think you should be adding risk to your portfolio."

In this episode of The Rules of Investing podcast, Lim details how and why it's time to add risk, explains their process for picking great fund managers, and he shares some of the managers they prefer for today's market conditions. 

Time stamps:

  • 1:50 - Nathan’s experiences and how they shaped his investment philosophy
  • 4:45 - Insights into Eric Sprott, master of the market in Canada
  • 6:14 - The roles of active and passive strategy within a portfolio
  • 9:10 - Morgan Stanley’s process for selecting the right managers
  • 14:00 - Big picture of the economy - where are we in the boom-bust cycle?
  • 19:06 - How much risk they're carrying in portfolios today
  • 22:45 - What are the biggest over and underweight allocations in the portfolio at the moment?
  • 33:50 - Is globalisation dead?
  • 37:00 - Where the best opportunities can be found
  • 40:20 - Which managers and ETFs stand out?
  • 44:00 - Nathan answers our three favourite questions

Specialist advice from Morgan Stanley

Morgan Stanley Australia focuses on providing individuals and institutions with specialist strategic advice and then helping implement these strategies through superior investment execution. For more of Nathan's insights, follow him here.

........
Livewire gives readers access to information and educational content provided by financial services professionals and companies ("Livewire Contributors"). Livewire does not operate under an Australian financial services licence and relies on the exemption available under section 911A(2)(eb) of the Corporations Act 2001 (Cth) in respect of any advice given. Any advice on this site is general in nature and does not take into consideration your objectives, financial situation or needs. Before making a decision please consider these and any relevant Product Disclosure Statement. Livewire has commercial relationships with some Livewire Contributors.

1 contributor mentioned

The Rules of Investing
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...

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.

Comments

Sign In or Join Free to comment