Christopher Lees – One-on-One Conversation
Having you listen to a portfolio manager isn’t really our thing. But bringing you really smart people from around the world who have interesting inputs and perspectives is. And that’s why we thought what portfolio manager Chris Lees from J O Hambro Capital Management (JOHCM) has to say was worth sharing with you directly. Chris not only has a unique approach to his strategies, but he also delivers those strategies without jargon and detailed investment lingo. His excellent storytelling and ability to relate complex investing ideas to understandable real-life applications made for a captivating discussion. It’s worth watching the entire conversation, but if you want the quick summary from our one-on-one event, here are five things we learned during our time with Chris:
- Stock markets are like real estate—do not buy good houses in bad neighborhoods. The most money is made buying the fixer-upper in the rapidly improving neighborhood and in stock market jargon that’s called alpha plus beta.
- Everything you knew about the global economy is now different because this global recession was unlike any other in history. It was the first recession caused by governments telling their consumers to stay at home, and the combined fiscal and monetary stimulus to bail out western consumers was the highest amount ever. Therefore, the recovery will be very, very different from any previous cycle.
- New themes are emerging: deglobalization, digitization, and decarbonization—driving a “Triplication” of supply chains. Decarbonization may be the biggest driver for the next decade with some huge winners and losers at the company level. Remember, there is no planet B.
- The most likely outcome from pent-up demand by consumers is a resurgence akin to the roaring 20s over the next few years.
- Central Bank Digital Currencies will fundamentally change and disrupt traditional finance as blockchain paves the way for more reliable and private bookkeeping.
We also invite you to view some of our recent posts and videos, including one on the reemergence factors I’m watching this spring, and one on the CNN Fear and Greed Index.