4 places to shop in a pricey market

In a previous wire, Lucerne’s Anthony Murphy and Michael Houghton warned rising inflation and a reversal of excessive valuations could take the steam out of risk assets.

But with bond yields delivering negative real returns, and sky-high property and equity prices, where do investors go from here? Fortunately, Murphy and Houghton believe opportunities to generate impressive returns still exist for those willing to think outside the box.

In this wire, the Portfolio Managers discuss four areas they’re putting their clients’ money into right now. One is private debt, where they’ve been generating reliable ~8% returns with little volatility. Another is buying insurance via options to profit from market volatility.

“You can take a 2-3% position and if volatility spikes, you’re making multiples on your investment but you’re also providing that underlying protection. And when things calm down and the circus leaves town, you can remove that position from the portfolio.” – Murphy
Watch the video or read on as Murphy and Houghton delve deep into their best ideas on where to invest amid pricey markets.

Read the full article: https://www.livewiremarkets.com/wires/4-places-to-shop-in-a-pricey-market

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