2024-03-20 07:00:00 ET
Summary
- Elevated inflation is a significant macroeconomic challenge that could persist, leading to increased volatility and downside risks.
- Low-volatility investing, which focuses on stocks with historically lower price volatility, can provide superior returns with reduced risks.
- I'll show you ten of my all-time favorite low-volatility stocks.
This article was coproduced with Leo Nelissen.
It's time to combine two important things:
- A discussion of macroeconomic challenges that could significantly increase volatility in the future and elevate downside risks after more than a year of steady returns.
- An investment strategy that mitigates downside risks without compromising on long-term returns.
Starting with the first bullet point, one of the biggest macroeconomic developments we have been discussing since 2021 is elevated inflation.
In 2021, I was in the camp of people who expected inflation to rise faster than the market anticipated. That turned out to be correct - unfortunately....
Read the full article on Seeking Alpha
For further details see:
Elevated Returns With Subdued Risks - The Low Volatility Approach