John Abernethy, Chief Investment Officer of Clime Asset Management, says the current environment with respect to ‘financial engineering’ is like nothing he has seen before. “There are some nights when I sit at home and think – what am I looking at here? And I hope I am not alone.” Abernethy says investors are skewing the risks they are willing to take in order to achieve mediocre returns. The advice he has been passing through to his own investors is to be patient and to keep expectations in check. “The world is on a wander through process – just be aware of that… The capital we don’t lose today is the capital we can invest tomorrow and that is where you will make your returns. It’s very much about not making mistakes in this cycle. Not being too aggressive and certainly not being greedy.”
Recorded on 29 April 2015 with Livewire Markets.