Rules attempt to create order where there is chaos and, as Martin Conlon from Schroders reports, the line between too few and too many is grey.

Paying sensible prices should remain the most reliable method for investors to protect capital in a world facing ongoing adjustment from an extended period of monetary excess.

Rising interest rates are likely to challenge highly leveraged consumers and governments. While activity remains strong, the true impact will take time to determine.

The gradual erosion of trust means that investors and companies should be seeking to build resilience rather than waiting and hoping for a return to calmer times.

The past decade has been vastly more abnormal than normal in the wider lens of history. Using it as the basis for future investment settings looks unwise to Schroders’ Martin Conlon.

The investing life looks set to become a little more difficult. Schroders’ Martin Conlon feels that it might be time for investors to take a lead from Steve Jobs and ‘Think Different’.

Expectations for 2022 are difficult to pin down as volatility continues due to uncertainty from COVID as well as high valuations. We take a look at the year ahead for Australian equities.

Along with Nick Kirrage, co-head of the Global Value team, Schroders Head of Australian Equities Martin Conlon discusses 5 notable investment themes for equities in 2022.

If the past decade in equity markets has taught us anything, mispriced money has resulted in some deeply ingrained beliefs and behaviours that are now unsustainable.

As central banks continue to justify market interventions that are covering up some outrageous valuations, Schroders are positioning their portfolio based on economic rather than market value.

Investors’ ongoing love affair with capital-light businesses continues unabated in a giant game of pass the parcel with highly inflated assets – but it’s hard to see when the music will stop.

While assuming markets will revert to the mean is not always a sensible strategy, investing on the assumption that supply/demand imbalances will continue indefinitely makes no sense either.

Australian companies have reported generally solid results as JobKeeper flows through to revenues, while central banks continue to pour fuel on the fire underneath asset prices.

Reasonable financial market returns masked a tumultuous year as investors continue to search for patterns in the market’s erratic behaviour. More surprises rolled in over December, with share prices oscillating wildly, commodity prices remaining depressed and cheap valuations overtaking business fundamentals.