Risk and return from the bottom up

Investing involves taking risks—but not blindly. In financial markets, prices move daily, and higher prices both increase risk and raise the bar for further returns. In the real world, some risks are costly to protect against, and some offer little compensation for sticking your neck out. But others are underappreciated, providing opportunities to generate attractive returns and mitigate risk at the same time. As we look at the world, we see a few risks that offer both pitfalls and potential returns for investors: energy infrastructure, chip scarcity, and ongoing government deficits. Against a backdrop of high stock market valuations and high apparent faith in central banks, these risks point to a cautious outlook for broad markets, particularly if inflation proves sticky. But for a bottom-up investor, these same risks offer attractive pockets of opportunity.

By the end of this session, delegates will be able to:

• Understand how the semiconductor ecosystem works and why energy is an important consideration for chip manufacturers
• Explain how the energy system works and which companies are likely to benefit from the energy transition
• What impact do government deficits have on opportunities within stock and bond markets
• Understand how inflation affects multi-asset portfolios and inflation-resilient assets
  

Speaker

Matthew Spencer, Head of UK Retail, Orbis

Matthew Spencer has been with Orbis since 2008 and has had a broad range of client-facing roles and responsibilities within the firm, most recently as leading the investment counsellor team which is responsible for servicing institutional clients and investment consultants globally. He previously worked as an investment analyst at Axis Specialty Limited and in the audit practice at PricewaterhouseCoopers. Matthew has a Bachelor of Accounting (Stellenbosch University) and is a Chartered Accountant and Chartered Financial Analyst.