The days when Australia “rode on the sheep’s back” may be long gone, but agriculture remains a critical component of the economy, generating valuable export income. While overseas investors understand its importance, for most local institutions it’s still a bridge too far.
For several years, investors, from institutional to retail, couldn’t get enough of the tech stocks with all their promises of future growth. But now the market has spoken and it’s saying precisely this – valuations matter again.
KKR has another ‘swing at the plate’
The world’s biggest and most famous, or infamous, private equity firm has revisited its opinions on the macro environment just two months after already delivering its original views, in January. The verdict is: it’s OK. Thanks for the insight.
The KKR white paper published recently by Henry McVey, the firm’s head of global macro and asset allocation, says that there are four things which have occurred since January, which prompted their most investor interest and/or consternation. Here is what they think are worth commenting on:
. China’s desire to ‘internalise’ its economy as a long-standing goal that accelerated after the global financial crisis; not just because of the election of Donald. J. Trump to the American presidency
. Despite all the headline news in Europe, KKR (and presumably other quality private markets managers) continues to uncover multiple ways for private investors to drive both absolute and relative performance.
. “Our work shows that we are at an inflection point in the US fixed-income markets – one that argues for shorter duration and more up-front yield against cash-flowing collateral, and
. “We are advocating a more nimble approach to both public and private markets in 2019. Actively managed opportunistic liquid credit is certainly central to this call to arms, but our framework also extends clearly in the private markets as well.”
– G.B.
