By Jeremy Schwartz, CFA, International Head of Analysis, WisdomTree
By Jeremy Schwartz, CFA, International Head of Analysis, WisdomTree
To kickstart our Behind the Markets podcast in 2021, we had the pleasure of chatting with John Davi of Astoria Portfolio Advisors concerning the 10 themes he’s incorporating into his mannequin portfolios for 2021.
Notable themes we mentioned embody:
- Commodity-Targeted Equities
- Davi likes pure resource-related shares comparable to gold mines, copper mines, and worldwide equivalents, given comparatively low valuations and an uptick in inflation expectations popping out of the financial shutdown.
- Cyclical Rotation Sectors Paired with Development-Oriented Thematics
- Davi likes sectors like Power, Financials and Industrials for a cyclical acceleration in 2021. Small caps are additionally one other manner he’s expressing this concept.
- After previous downturns like 2000, 2008 and 2015 with Greece, the cyclical sectors tended to carry out higher popping out of the trough.
- Davi thinks banks specifically carry a margin of security, given they commerce at steeper reductions to the market, and with charges climbing increased, they need to carry out higher.
- Davi is pairing cyclicals with growth-oriented thematic funds like Clear Power, Genomics and Biotech to carry idiosyncratic threat to his diversified portfolios.
- Davi likes sectors like Power, Financials and Industrials for a cyclical acceleration in 2021. Small caps are additionally one other manner he’s expressing this concept.
- China and Rising Markets
- Whereas there may be definitely headline political threat, Davi likes China as a long-term tactical allocation tied to the rising client class over subsequent 10 years and the extra technology-driven themes in China. Davi likes how China client names commerce at a reduction to the S&P 500 with superior long-term development traits.
- Regulatory threat: Whereas China was within the information with the Trump Administration’s govt order final week, Davi sees the brand new administration being much less motivated to boost battle and thinks we’ll see decrease stress in commerce wars.
This was an amazing dialog as to how Astoria is 2021 and the 10 themes guiding their allocations. You possibly can hearken to the total dialogue beneath.
Initially printed by WisdomTree Investments, 1/12/21
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