This month we kick off with a discussion about financial risk premia spreads and how they drive asset prices. With interest rates on the rise — it’s important to understand how cash, bonds, and equities compete for capital flows. Interest rates are driven by inflation expectations so in the macro section we cover the latest inflation indicators and what they’re telling us. The micro section this month includes two picks; one is a deep value offshore driller and the other is a fund that invests in Indian companies. It’s run by one of the best investors you’ve never heard of… We also got an interesting long idea in sugar and gold that’s worth a look. And finally, we do a short analysis of the volatility space that includes a low risk way to hedge portfolio beta.
