Countries We Like
We are bullish on the U.S., Japan, Korea, and India, and we favor the industries mentioned below.
We are optimistic on the remainder of 2021, and believe that GDP growth in the U.S. will exceed analysts’ expectations, and that they will spend the year playing catch-up.
Market Sectors We Like
We believe the year’s opportunities will lie largely in inflation-beneficiary sectors and industries, including commodities, particularly related to industrial and technological applications, as well as consumer-facing industries, services industries, entertainment, cyclicals, and reopening beneficiaries, many of whom have yet to reclaim their pre-pandemic highs.
The tech darlings who fared so well during the pandemic’s darkest period will come back to earthly valuations unless they can truly deliver on the growth their elevated prices implied, and even then, they may be challenged.
We like the U.S. best of the world’s stock markets. We do like Japan and South Korea due to their position as technological and robotics leaders; as a precision machinery powerhouse, Japan is often said to be a “warrant on global growth.” We are long-term India bulls on the basis of economic and regulatory reform, which will ebb and flow as the country makes further progress.
Gold and Cryptos
We like gold for the long-term, and note that cryptocurrencies have stolen some of its thunder. We believe in the long-term rise of digital assets, and we believe that central bank issued digital currencies seem to be unavoidable, and pose an unknown risk to decentralized cryptos. While governments cannot stamp out non-government cryptos, their efforts to do so will have significant ramifications by creating great volatility for crypto markets.
Thanks for listening; we welcome your calls and questions.
