Is It Time To Stop Following Central Banks?

Published on
August 18th, 2021
Duration
62 minutes

Harris Kupperman: Capturing the Upside with Macro and Event-Driven Plays


Is It Time To Stop Following Central Banks?

The Interview ·
Featuring Jack Farley and Anneka Treon

Published on: August 18th, 2021 • Duration: 62 minutes

For the past decade, many investors who have bought stock indices via passive allocation have done better than those who sought returns via active management. Anneka Treon, managing director and head of the Competence Center at Van Lanschot Kempen, argues that the days of passive investing’s overperformance are soon – if not already – over. Treon explains that, since the global economy has emerged from a short and steep recession, investors can no longer rely on central banks' ability to support asset prices. Moreover, Treon continues, since inflation will prove to be persistent rather than transitory, investors will eventually balk at sovereign bonds such as U.S. Treasuries just as they did in February and March of this year. In this environment, Treon argues that companies with true pricing power will offer investors the ultimate protection from hot and sticky inflation. Interviewed by Jack Farley on August 15, 2021.