Navigating Global Markets in an Era of Tariffs and Volatility
Bentham Asset Management’s Chief Investment Officer, Richard Quin, recently appeared on the Basis Points podcast by Equity Mates. Recorded live at the Morningstar Investment Conference, the episode explores how shifting global politics are reshaping credit and fixed income markets.
Richard compared today’s environment to The Truman Show. He explained how rising tariffs, isolationist policies, and declining global trust are distorting market signals. These changes, he argued, aren’t temporary – they signal a broader transformation in how economies interact and grow.
Rethinking Market Assumptions
During the conversation, Richard challenged several popular narratives. For instance, he questioned the perceived role of China in recent bond market volatility. He also examined the rise of bond vigilantes and how the growing popularity of private debt is affecting market liquidity.
These insights are especially relevant for advisers and investors navigating an increasingly complex environment.
Building Stronger, Defensive Portfolios
As uncertainty continues to dominate headlines, Richard offered practical steps for building resilient portfolios. First, he noted that higher yields are creating new income opportunities in credit markets. He also stressed the importance of liquidity, particularly as private markets expand.
Most importantly, Richard emphasised the need for a disciplined, flexible approach. Focusing on high-quality credit, diversifying holdings, and using active management can help investors weather future disruptions.
Key Takeaways
- Geopolitical change is structural, not cyclical. Investors must adapt their strategies accordingly.
- Fixed income is back in focus, with yields supporting more defensive positioning.
- Liquidity and quality matter, especially in uncertain conditions.
- Active management adds value when market signals are harder to read.
