Global equities: why active management matters
Investing beyond benchmark indices
Investing in global equities means going beyond trackers replicating indices like MSCI World. While useful during market upswings, such tools lack flexibility during downturns. Active management, on the other hand, capitalizes on opportunities in both bullish and bearish markets, leveraging diversification and managing risks effectively.
Recovery mathematics plays a critical role: a 50% loss requires a 100% gain to break even. Limiting losses during downturns preserves capital and generates more stable growth over time.
Innovation and technology: beyond the IT sector
In recent years, the IT sector has led the way with companies like Nvidia, Microsoft, and Taiwan Semiconductor. However, innovation extends beyond pure technology. Companies like SharkNinja exemplify how strategic technological applications can revolutionize traditional industries.
The key lies in leveraging technology as a tool for evolution, regardless of a company’s core business. Giants like Alphabet and Intuit also harness innovation to solidify their positions and explore new horizons.
The flexibility of active management
Adapting to emerging trends and mitigating risks are hallmarks of active management. This proactive approach enables managers to identify the best opportunities, even in seemingly less obvious sectors.
The ability to strategically navigate evolving markets ensures long-term value, focusing not only on current trends but also on anticipating future ones.
