Timing the Market vs Risk Control

Rezco Asset Management hosted an investment webinar on 3 May 2021, with Chief Investment Officer Rob Spanjaard, Co-Portfolio Manager and Head of Research Simon Sylvester, and Head of Distribution Brian du Plessis presenting views on timing the market vs risk control. As a South African asset manager, Rezco explains how macro conditions, valuation and risk control shape unit trust and segregated portfolio decisions.

What this webinar covers

This webinar replay covers Timing the Market vs Risk Control and how Rezco interprets current markets for clients seeking risk-adjusted returns. The session focuses on Rezco Global Equity Fund, Rezco Managed Plus, Rezco Multi-Asset funds and related portfolio themes. If we get in an environment where inflation does start to kick up, you can't have qe, they've gotta tighten the budget deficit.

Key themes discussed

• South African macro and politics
• US elections and policy
• artificial intelligence in investing
• bear markets and recessions
• cryptocurrency
• emerging markets
• Donald Trump
• Jerome Powell

Macro and market context

If we get in an environment where inflation does start to kick up, you can't have qe, they've gotta tighten the budget deficit. So the Fed, the fed's got this inflation and full employments and they, and monetary policy tries to adjust between the two.

Companies, sectors and ideas mentioned

• Berkshire Hathaway
• Standard Bank
• Tesla
• Donald Trump
• Jerome Powell
• Joe Biden
• Larry Summers
• Federal Reserve
• JSE
• National Treasury

Rezco's risk and portfolio views

And so you hedge out your market risk, but you just get your stock picking risk and return. So we've got, got some hedged equity in the global fund, quite a big position we think relative to the risk in the market. And that's how you end up with these long drawdowns in the market that go over many years because earnings are falling, shares are getting cheaper, the shares are falling, but the valuations aren't necessarily getting cheap because there's this earnings hit.