New world order: How to profit from it?

Investing in the ever-evolving global landscape requires a strategic and long-term approach, especially when it comes to emerging markets. Mark Lindhiem, Chief Investment Officer at Investment Solutions, recently shared insights on how investors can navigate the current economic uncertainties and capitalize on opportunities in the new world order. From geopolitical shifts like Brexit and the Trump administration to fluctuating oil prices and the recent ECB developments, there are several factors at play that impact emerging markets. Lindhiem emphasized the importance of looking beyond traditional asset classes like bonds and equities, which are currently experiencing high valuations. Instead, he recommended adopting a multi-strategy approach that incorporates alternative investments such as private equity, private debt, and infrastructure. By diversifying across various asset classes, investors can better manage risks and potentially achieve uncorrelated returns during volatile market conditions. Lindhiem also highlighted the significance of understanding currency fluctuations in a global investment portfolio. While currency hedging can be a useful risk management tool, he advised taking a long-term view and aligning currency strategies with overall investment objectives. In terms of specific investment opportunities, Lindhiem pointed to the growing potential of local markets, particularly in private equity and renewable energy sectors. He noted the emergence of listed private equity companies on the JSC and emphasized the benefits of unlisted markets in providing stability and diversification. With the increasing focus on infrastructure investments, post-Brexit and potential Trump policies, sectors like commodity mining and construction have gained attractiveness for investors seeking growth opportunities. Investment Solutions' approach involves a diversified portfolio across various asset managers and sectors, with a preference for value-style investments over traditional momentum strategies. Overall, Lindhiem's insights shed light on the importance of adopting a flexible and proactive investment strategy to thrive in the new world order. As global markets continue to adapt to changing dynamics, a well-structured portfolio that combines traditional and alternative assets can help investors navigate uncertainties and capitalize on emerging opportunities.