How to maximize returns if stocks don’t rise much from here

00:00 Speaker A

So how do you then maximize your returns this year, if things might go a bit sideways from here?

00:08 Speaker B

Look, we’re looking at, um, adding places, uh, or or sort of adding risk in in in sectors and sub-assets that makes sense to us. We like the US 10-year at 442, which is the current level that it’s trading at. It’s actually above the equity risk premium in the markets right now. So if you’re basically getting paid the same for owning the S&P 500 and owning the US 10-year bond, we think it makes a lot of sense to, uh, add on duration right now. Uh, we like also sectors that are paying you income and has not impacted by tariffs, the like MLPs. That’s one. So so there are definitely opportunities out there, uh, to which to add risk to your portfolios if you have some extra cash.

00:58 Speaker A

I’m curious then if you’re talking about, um, you know, sort of dividend plays to some extent or income plays to some extent, how you feel about what had been a very hot trade, which has cooled off to some extent. And I’m talking about the utilities, which has also been sort of an AI play, right? So is that an area that you would be looking?

01:22 Speaker B

Yeah, long term we still think that’s a pretty attractive sector. Uh, we think utilities, not only are they going to be sort of, uh, um, you know, having their sort of traditional roles within portfolios, but we think it’s actually a growth sector precisely because of what you mentioned with the AI play. So we like utilities. In fact, we’d look, or we will look for this pause as an opportunity to add risk there as well.