Now we're in a very different landscape to the one we saw before, and making those kinds of returns is going to be that much harder. Investors can't just rest back on actions they got used to over the last 10 years.
How do you think investors should approach stocks in the current landscape?
If you don't like stocks for the new era, what kind of investments would you recommend?
Advertisement
SS: Real assets, like commodities and natural resources.
There's always going to be volatility for a commodity, but if you're looking over the longer term, the picture of commodities is strong simply because they're finite resources, and it's a similar story with natural resources.
I also like listed infrastructure. Historically, in a period of low economic growth and higher-than-expected inflation, it outperforms global fixed income and global equities, almost without exception.
What do you think of Shah's insights on the end of the easy-money era?Tweet me @philrosenn, or email me prosen@insider.com.
Advertisement
And here are the top stories from markets this week:
1. Goldman Sachs named the stocks that hedge funds are piling into right now. Strategists said firms are adjusting to a micro-driven economy, and certain names set them up to outperform the broader market. Here are 12 names institutions are eyeing.
2. The probability of a disastrous US debt default has more than tripled since the start of the year, MSCI wrote in a note. Trading activity in US government credit card swaps has surged as investors buy insurance on a potentially catastrophic event. Get the full details.
3. A new Zillow survey showed that home prices will fall in 2023 but then enter a growth period like the one from the 1980s. The survey forecasts that prices will dip 1.6% this year, then rise at an average yearly rate of 3.5% through 2027. Under that scenario, home prices will be up 23% in 2027 compared to 2021 levels.
5. Warren Buffett made a splash this week with his annual letter to shareholders. He touted his iconic Coca-Cola and American Express bets, and also trashed managers who manipulated earnings. Read our full recap from the billionaire legend.
7. Holding cash isn't a guaranteed safe bet. The top strategist at RiverFront Investment group said even though bond yields are surging, there's reason to be cautious: "Cash feels safe during a crisis, but there is a cost."
10. These 13 beaten-down stocks offer a "margin of safety" from a potential credit shock. That's according to top-1% fund manager, James Abate. See the full list of names he's most bullish on.
Edited by Max Adams (@maxradams) in New York and Nathan Rennolds (@ncrennolds) in London.
{{}}
NewsletterSIMPLY PUT - where we join the dots to inform and inspire you. Sign up for a weekly brief collating many news items into one untangled thought delivered straight to your mailbox.