The Inversion of Investment Portfolios

  • 📰 ftenergy
  • ⏱ Reading Time:
  • 49 sec. here
  • 19 min. at publisher
  • 📊 Quality Score:
  • News: 82%
  • Publisher: 63%

Finance Nachrichten

Investment,Portfolio,Pyramid

The once-reassuring construction of investment portfolios has become gradually inverted, with a shrunken secular and structural base supporting a larger opportunistic and tactical top. This change is fueling a debate between those worried about bubbles and those comfortable with structural reinforcements.

Early in my investment management career, I was taught to design long-term investment portfolios as a pyramid. A solid foundation of secular and structural positions, with a much smaller opportunistic and tactical top. In other words, construct a durable structure that could mostly resist unsettling market volatility and navigate economic and geopolitical shakes.

Today, this once-reassuring construction seems to have become gradually inverted: a shrunken secular and structural base now has to support a larger opportunistic and tactical top. It is one that, having proved extremely resilient, is now fuelling a debate between those worried about bubbles and those comfortable that structural reinforcements are just around the corner. Secular investments play out over time, powered by a maturation of the underlying return drivers that provide for greater investor adoption. It is the sort of process that is now being demonstrated by artificial intelligence-focused chipmaker Nvidia, which has become the market’s darling. The underlying driver there is the potential for large-scale application of an innovation in which the company holds a dominant role at present. The turbo charger of its stock price is the change in its shareholder base from a few highly sophisticated investors to wider buying by the investing public

Wir haben diese Nachrichten zusammengefasst, damit Sie sie schnell lesen können. Wenn Sie sich für die Nachrichten interessieren, können Sie den vollständigen Text hier lesen. Weiterlesen:

 /  🏆 47. in AT
 

Vielen Dank für Ihren Kommentar.Ihr Kommentar wird nach Prüfung veröffentlicht.

Österreich Neuesten Nachrichten, Österreich Schlagzeilen

Similar News:Sie können auch ähnliche Nachrichten wie diese lesen, die wir aus anderen Nachrichtenquellen gesammelt haben.

Scottish land market showing signs of investment slowdownTHE Scottish land market is showing signs of a slowdown after a substantial increase in its value in recent years - due to demand from commercial…
Herkunft: SunScotNational - 🏆 49. / 63 Weiterlesen »

Investment advisors pay the price for selling what looked a lot like AI fairy talesSEC bags $400K in settlements
Herkunft: TheRegister - 🏆 67. / 61 Weiterlesen »

A $74 Billion Investment Plan for the UK's Energy SystemThe UK's power systems operator is proposing a planned investment of $73.6 billion in the energy grid to meet growing demand.
Herkunft: OilandEnergy - 🏆 34. / 68 Weiterlesen »

Investment to cut waiting times for family law cases welcomedA £170 million cash injection into the justice system has been cautiously welcomed by a Shropshire legal expert.
Herkunft: ShropshireStar - 🏆 98. / 51 Weiterlesen »

Saudi Arabia’s investment fund has been set an impossible taskIt must earn eye-watering returns while speeding the shift to a post-oil economy
Herkunft: TheEconomist - 🏆 6. / 92 Weiterlesen »

Calls for further investment in city's roads after £3 million plan announcedNottinghamshireLive readers have been debating the recent announcement of a £3 million investment on major A-roads
Herkunft: nottslive - 🏆 96. / 52 Weiterlesen »