Paul Marson, the chief investment officer at Lombard Odier Private Bank explains why Europe looks compelling, Japan may drown in debt, and why technology can save the world from a commodity crisis. David Stevenson asks the questions
How are you approaching today’s very volatile, even skittish, equity markets? We are basically doing what we have always done. We want to invest in anything that has the following characteristics: Something where the valuations are compelling. Something with a wide and attractive risk premium. The risk premium tells me the price of risk so I can make sure I am buying risk cheaply. Moreover, the frequency and the extent of large drawdowns is linearly correlated to that risk premium. So I want something where the frequency and extent of large drawdowns is minimal. I want to invest...
To continue reading this article...
Join Investment Week for free
Signup and gain exclusive members-only insights - all free of charge!
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes
