Central bank liquidity is supporting markets at the expense of yield seeking investors, on a scale that is likely to feel its impact for the next decade. However, this financial repression could very well initiate a rebound in sustainable, income-oriented Value Emerging Markets stocks in which we at Rothko Investment Strategies aim to identify and invest in.
Q1-2020
– Dividend payers were defensive in Q1 but suffered in 2020 overall, regardless of sustainability…
– Central banks poured money into the global financial system and China engaged the National Team.
Q4-2020
– Dramatic dislocations continued to punish solid dividend payers…
– By year end, central banks injected $8.5 trillion, a move that will likely usher in a decade of financial repression…
– …which is likely to initiate a significant rebound in income stocks.
We believe significant alpha opportunities exist for the discerning stock selector focused on the discovery of sustainable, future income potential.
