Name: The predictability of developments
Uploaded: 2023-01-19T18:45:43.833154+00:00
Duration: 3594 s
Channel: Master Investor
Description: Master Investor contributor Jonathan Davis undoubtedly sees volatility to be a key theme in 2022. In light of uncertain developments – such as the Ukraine conflict, interest rates and inflation, and Federal Reserve movements – he takes a more cautious approach in 2022, leaning towards cash and more defensive investments.

Master Investor contributor Jonathan Davis undoubtedly sees volatility to be a key theme in 2022. In light of uncertain developments – such as the Ukraine conflict, interest rates and inflation, and Federal Reserve movements – he takes a more cautious approach in 2022, leaning towards cash and more defensive investments.

Master Investor contributor Jonathan Davis undoubtedly sees volatility to be a key theme in 2022. In light of uncertain developments – such as the Ukraine conflict, interest rates and inflation, and Federal Reserve movements – he takes a more cautious approach in 2022, leaning towards cash and more defensive investments.

https://d3ev5earl6dvd0.cloudfront.net/public-media/videos/004/102/004102/video_D9NTPmB.mov#t=547

Master Investor

The predictability of developments

About Investing in 2022

The key themes of 2022

Inflation and technology stocks

Victor Hill's positioning

Exposure to investment trusts

The prospects of renewable energy

The prospects of banks

2022 promises to be an 'interesting' year for investing. This webinar addresses the major themes and assesses how investors can make the most out of the year ahead.

Sarah Lowther is joined by Victor Hill, Mark Watson-Mitchell and Jonathan Davis for a look at the major themes and opportunities that lie ahead.

2022 promises to be an 'interesting' year for investing. This webinar addresses the major themes and assesses how investors can make the most out of the year ahead.Sarah Lowther is joined by Victor Hill, Mark Watson-Mitchell and Jonathan Davis for a look at the major themes and opportunities that lie ahead.

https://d3ev5earl6dvd0.cloudfront.net/public-media/videos/004/102/004102/video_D9NTPmB.mov

Sarah Lowther introduces the format of "Investing in 2022", a webinar that hosts Master Investor contributors Victor Hill, Mark Watson-Mitchell and Jonathan Davis to discuss the major themes and opportunities that lie ahead.

Master Investor author Victor Hill sees three strands as the main themes in 2022: i) macroeconomics (influenced by continuing inflation, increasing interest rates etc.), ii) technology (the performance of technology stocks post-Covid), and iii) geopolitics (impacted by the danger of a Russian invasion in Ukraine). Asset allocation is considered as key to good investing in 2022.

Master Investor author Mark Watson-Mitchell sees inflation going up to 10%, with sales being tempered post-Covid. He also sees technology stocks lowering and difficult to value, and thus prefers annual recurring revenue stocks.

Victor Hill sees a potential turning point for interest rates to return to normality, which would affect technology stocks. He therefore refrains from allocating to large-caps technology stocks, instead reducing equity exposure. Victor Hill is bullish on commodities, agriculture and land, as well as some niche technologies such as vaccine developments and cyber security.

Investment trusts are equities, listed companies with a distinctive feature: they have a board of directors, and are governed by company law and the accounting requirements of listed companies. However, with a concept of discounts and premiums, they represent a more sophisticated investment. Jonathan Davis, author of "The Investment Trusts Handbook", considers investment trusts as very good vehicles for long-term investors. Over the last ten years, so-called alternative investment trusts have emerged, which not just invest in equities but more specialist areas such as renewable energy, specialist property or logistics.

Victor Hill considers decarbonisation to be one of the great themes of the next three decades. He highlights that in share price terms, power generators seem to have performed less strongly than other market participants, such as companies which produce the technology and components that drive renewable energy. While he sees various issues with both wind technology and battery technology (particularly lithium-ion battery technology), Victor Hill has hydrogen technology on his watchlist for the next ten years, and is also quite bullish on nuclear.

Provided the yield curve remains positive, Jonathan Davis expects banks to outperform the rising interest rate environment. He emphasises that today's banks are in much better shape than ten years ago.