FED Pivot or Policy Error

Rezco Asset Management hosted an investment webinar on 30 January 2024, 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 fed pivot or policy error. 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 FED Pivot or Policy Error and how Rezco interprets current markets for clients seeking risk-adjusted returns. The session focuses on Rezco Managed Plus, Rezco Multi-Asset funds, Rezco SA Equity Fund and related portfolio themes. You can't just, if, if the world goes into a recession now, you can't just cut interest rates to zero and print cash because, inflation's high.

Key themes discussed

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

Macro and market context

You can't just, if, if the world goes into a recession now, you can't just cut interest rates to zero and print cash because, inflation's high. In the same way when the fed pivoted, we said, okay, well the fed's kind of taken this big macro risk instead of kind of playing the normal cyclical conservative, monetary policy, hanging around a soft landing or a recession probabilities.

Companies, sectors and ideas mentioned

• Apple
• Naspers
• Tesla
• Donald Trump
• Jerome Powell
• Joe Biden
• European Central Bank
• Federal Reserve
• JSE
• South African Reserve Bank

Rezco's risk and portfolio views

The downside, and this is the, the Fed said, look, the major, a risk we face, the last time we had major inflation was in the seventies. And what we've managed to do on the equity front as well, in this high risk environment is do it to the lower volatility. Those shares are probably too expensive and it's discounting to kind of smooth economic conditions, no recessions and just strong earnings growth and high valuations similar to, similar to the seventies, which had a similar story across.