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.