There’s a paradigm shift happening in the markets; position accordingly – Sean Peche
UK-based fund manager Sean Peche shares his views on two very topical investment themes; the growth to value rotation and China as an investment destination. The growth to value rotation seems to be in full swing, with a 7% differential between the MSCI Value Index compared to the MSCI Growth Index in the first two trading weeks of 2022. Peche puts this down to interest rate hike and inflation concerns, as investors are searching for ways to make a real return (gross return less inflation) on their money. Peche outlines the risks of China as an investment destination, with Tencent’s recent corporate actions dominating the conversation. Tencent’s value should be of concern to many South African savers, with Naspers and Prosus deriving its value from the Chinese tech titan.