This translation has been automatically generated and has not been verified for accuracy.Chinese internet stocks, housing-related debt, and leasing older planes while the Boeing 737 MAX remains grounded are among the top bets for the coming year by speakers at the Reuters Global Investment Outlook 2020 Summit in New York this week.
Instead, investors are shying away from broad bets on the market and instead focusing on more specialized assets in hopes of finding value as global economic growth slows.“Right now we are at a period of a long bull run and you’ve got the market at historic highs. This is not a time when exposure to the market is going to generate excess return,” said Glenn Hutchins, a private equity investor and a co-founder of technology-investing firm Silver Lake.
“The areas that caused the most damage the last time are the areas we see the most value today,” he said.He is particularly focused on mortgages that originated before the housing crisis in which a homeowner has stayed in the same property for more than 12 years, he said. Hsu said that the credit risks posed by the current record-high levels of corporate debt have led them to reduce their position in collateralized loan obligations . They have moved instead into agency commercial mortgage-backed securities as well as asset-backed securities.