- Bearbull is adding a new position to use up his Isa allowance
- Latest results show plenty of promise
- Well suited to the higher rate environment and matches the income + capital growth aims of the portfolio
Last week, this column played host to a duel between two investment heavyweights. In the red corner, Jeremy Grantham’s GMO, which in atypical fashion had just stated its “excitement” at the opportunity set across equities, especially in the boxes marked value, small-cap, and non-US. To the oft-bearish asset manager, today’s conditions present the “best relative asset allocation” options since the collapse of the Soviet Union. Fundamentals? Back with a bang.
In the blue shorts, we had Jonathan Ruffer, pondering the end of the equity era and a sustained period of painful de-leveraging, corporate fire-fighting and disenchanting returns ahead. Ruffer’s long-held investing maxim – to not lose money, rather than maximise returns – echoed loudly. Those fundamentals? A second-order priority to a deteriorating macroeconomic backdrop.