Part 2: Positioning for the Post-Pandemic Cycle

Investment Strategist

In part 1 of this paper, we touched on the secular themes that we believe will shape a more inflationary and volatile environment going forward. In part 2, we explore how:

  • From a long-term perspective, we see several important secular forces driving the post-pandemic cycle – including regionalisation, greenflation and more frequent black swans.
  • Preparing for these secular forces means dusting off some pages from the 1970s stagflation playbook, capturing alpha from new age developments (such as ESG), buying defensive companies with lower volatility to weather more market turbulence and not over-leveraging as the cost of capital is expected to be higher.
  • We explain why a diversified portfolio built on an intersection of alpha and risk mitigation is better suited to this forward environment.

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