The volatile start to 2022 is bringing opportunity in global equities.

In this fast podcast, Pendal’s NUDGEM RICHYAL, co-manager of Pendal Global Select Fund, explains how he is approaching the market.

An excerpt:

"You want to sharpen your pencil because there might be some early birthday presents through this year, as my co-manager Chris Lees would say.

"Some of these stocks actually have pretty good business models and maybe the valuation just got a little bit overextended.

"This will be a healthy correction for those type of names.

"Who wouldn’t have loved to have bought Amazon in 2002? Who wouldn’t have loved to have bought Netflix in 2009? You'll get those kind of opportunities within this space.

"That's one way we are looking at it. The other way is we think it's too early to bet on a complete regime shift.

"At the moment the commentary seems to be hawkish... But we haven't even had a rate hike yet.

"The other thing to bear in mind is value rallies tend to be short lived.

"So if you look at the other side -- which are the short-duration stocks and how do they fare in this type of market environment?

"Generally they tend to do well, but it doesn't last that long. So that becomes a market timing issue.

"Then the last thing is – if growth starts to slow, is there really going to be much longevity to the rate hike cycle?"

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Nudgem Richyal co-manages Pendal Global Select Fund with Chris Lees. The pair have been working together in global equities investing for more than 20 years.

Pendal Global Select Fund is a global equities portfolio with a distinctive, yet proven approach and a 17-year track record of outperformance. 

The volatile start to 2022 is bringing opportunity in global equities.
In this fast podcast, Pendal&rsquo;s NUDGEM RICHYAL, co-manager of Pendal Global Select Fund, explains how he is approaching the market.
An excerpt:
"You want to sharpen your pencil because there might be some early birthday presents through this year, as my co-manager Chris Lees would say.
"Some of these stocks actually have pretty good business models and maybe the valuation just got a little bit overextended.
"This will be a healthy correction for those type of names.
"Who wouldn&rsquo;t have loved to have bought Amazon in 2002? Who wouldn&rsquo;t have loved to have bought Netflix in 2009? You'll get those kind of opportunities within this space.
"That's one way we are looking at it. The other way is we think it's too early to bet on a complete regime shift.
"At the moment the commentary seems to be hawkish... But we haven't even had a rate hike yet.
"The other thing to bear in mind is value rallies tend to be short lived.
"So if you look at the other side -- which are the short-duration stocks and how do they fare in this type of market environment?
"Generally they tend to do well, but it doesn't last that long. So that becomes a market timing issue.
"Then the last thing is &ndash; if growth starts to slow, is there really going to be much longevity to the rate hike cycle?"
-//-
Nudgem Richyal co-manages&nbsp;<a href="https://www.pendalgroup.com/products/pendal-global-select-fund/">Pendal Global Select Fund</a> with Chris Lees. The pair have been working together in global equities investing for more than 20 years.
<a href="https://www.pendalgroup.com/pendal-global-select-fund/"></a><a href="https://www.pendalgroup.com/pendal-global-select-fund/">Pendal Global Select Fund</a> is a global equities portfolio with a distinctive, yet proven approach and a 17-year track record of outperformance.&nbsp;

Perpetual Group is an international asset manager including boutiques such as Perpetual, Pendal, Barrow Hanley, Regnan and Trillium. Each week our portfolio managers share the most interesting things they've heard from CEOs, industry leaders and analysts.

Perpetual Group is an international asset manager including boutiques such as Perpetual, Pendal, Barrow Hanley, Regnan and Trillium. Each week our portfolio managers share the most interesting things they've heard from CEOs, industry leaders and analysts.

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