Speaker 1: You're listening to a shares these podcast, So what is
Speaker 1: the recommendations for investors? Do you think to see you? Then,
Speaker 1: I think bonds actually still look good, so yields, and
Speaker 1: you've got to think about the risks that they're hedging
Speaker 1: you for. If you look back to twenty twenty two,
Speaker 1: everyone says our bonds didn't work. My equities went down,
Speaker 1: my bonds went down. It was just horrible. There's no diversification.
Speaker 1: Bonds don't ensure you for an inflation shock. They ensure
Speaker 1: you for a growth shock. And right now, the consensus
Speaker 1: view is that everything goes along really, really well, and
Speaker 1: that's why bond yields are higher than they are. Us
Speaker 1: growth will be pretty robust, but the world is a
Speaker 1: mysterious place where things like COVID nineteen happen, and then
Speaker 1: you need your bonds to ensure your portfolio. You are
Speaker 1: getting paid to be there at the moment. The one
Speaker 1: caveat i'd really give is that the additional return you're
Speaker 1: getting for buying a corporate bond or a corporate bond
Speaker 1: fund is really really low at the moment. So i'd
Speaker 1: favor I do favor in portfolio is having more of
Speaker 1: a sovereign bent than a corporate bent, because that's rarely
Speaker 1: going to help you with your downside protection. So yeah,
Speaker 1: I think they look good, as I said, New Zealand,
Speaker 1: but more relatively attractive compared to global shares. And that's
Speaker 1: largely because of just how wide the breadth of expensiveness goes,
Speaker 1: particularly in the US, to a lesser extent globally as well.
Speaker 2: You know, when you talk about downside protection, I think
Speaker 2: it's worth thinking hard about that because the one thing
Speaker 2: that I think has changed from in the last say,
Speaker 2: three or four years compared to almost the whole of
Speaker 2: the rest of my career is we've been through a
Speaker 2: period of globalization, trade liberalization, internationally accepted rules. We're now
Speaker 2: into where economy kind of trumped politics. We're into an
Speaker 2: era now where politics trump's the economy and trade. So
Speaker 2: there is a lot of uncertainty and baked into that.
Speaker 2: It can just be Trump saying something different every day,
Speaker 2: or it can be the Chinese economy tanking so badly
Speaker 2: that they need to create a distraction and decide to
Speaker 2: invade Taiwan. You know, all sorts of things can happen
Speaker 2: when politicians rather than markets are driving things which you
Speaker 2: don't see coming. So I do think that while there's
Speaker 2: a lot of upside there in the US story, and
Speaker 2: I really take your point about new Ually it may
Speaker 2: not look very exciting, but if it's cheap enough, it's
Speaker 2: always exciting. I would be taking a lot of cognizance
Speaker 2: of the potential for something to come created by our
Speaker 2: fellow man and women, but mainly man, which will up
Speaker 2: end the apple cart, and which has nothing to do
Speaker 2: with actual economic conditions and has everything to do with geopolitics.
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Speaker 1: to invest. Everything you're about to see and hear is
Speaker 1: current at the time of recording.