Ten years ago, investing was an easy game. Thanks to rates near zero and reckless fiscal spending, markets were drunk on liquidity.

There was multiple expansion across the board, and winning was relatively easy. Pick an index, sit back and let multiple expansion take care of the rest.

Today’s reality is far different. Volatility is high, correlations are weak, and the once reliable 60/40 portfolio is, well, not so reliable.

In today’s episode of The Rules of Investing, I sit down with Frances Lim, Managing Director and Head of Asia Pacific Macro at KKR.

Francis strikes a refreshingly positive tone on the market today, pointing out that wages, nominal GDP and earnings are all above trend.

Frances gives us a full macro appraisal of US and Asian markets, the state of China, how she views investing in 2023, and where she’s finding value in the market.  

Thanks again to Bell Direct for their support of this podcast. And remember, for a limited time, you can get 3 current Bell Potter stock reports each week. It’s the kind of exclusive research that can give investors an edge. So go to Bell Direct and look for the Livewire logo to get your Bell Potter stock reports now.

Note: This interview was recorded on August 22, 2023.

Timestamps

0:00 - START1:50 - Soft landing?4:20 - A great setup for companies7:17 - The health of corporate America10:17 - What's happening in China?14:00 - China's trickle-down economics19:00 - Correlations in trouble23:10 - Time for a 40/30/30 portfolio24:27 - The best risk-adjusted return27:40 - Is passive investing enough?29:40 - The role of thematic investing31:30 - How active should active investors be?32:40 - The best opportunities in Asia right now