Master Investors
Navigating moral hazard and maximising risk reward in the era of inflation
Gone is the helicopter money. Gone is the quantitative easing that supported U.K. plc, the general public and retail investors. What is here is volatility and the challenges high inflation presents.
Charles White-Thomson is chief executive of Saxo Markets UK, and he assures investors they can navigate this new economic paradigm not just by demanding more from their wealth managers but adjusting their own attitude to risk.
"It's all about risk management and understanding that your portfolio has many gears. It is not just long only. It is not just driving in the fourth gear. There are many things that we can do in order to tackle what is a pretty challenging environment."
White-Thomson says money can be made on the downside if there's portfolio diversification, and sage advice gleaned from those who have experience of emerging markets.
He argues there are ways to 'play inflation' including investing in commodities and gaining exposure to water and agriculture - both important solution providers to an imminent food and cost of living crisis if the naysayers are to be believed.
White-Thomson argues there is opportunity for the proactive and those who own their portfolio and don’t fall into the moral hazard trap inadvertently created by central bankers.
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