Steno Signals #64 - The one on ESG-flation, oil and other tangibles
It is no secret that we have never been major fans of the overfitted ESG narrative in investing, but the market is now starting to chime in. Windmills suffer while Oil gains. Who would have thought?
Welcome to our weekly flagship editorial. Remember that you can always follow our portfolio live right here.
As per usual, this is where you will get the unbiased and uncensored macro strategy that will hopefully allow you to make profitable investment decisions going forward.
Our current portfolio composition has been performing well amidst poor returns for most other market participants, so here is why we remain positioned towards:
1) Weak European FX versus both Asian and North American peers
2) Long energy and broad commodities
3) Long US steepeners (2s10s)
4) Short labour cost intensive sectors such as consumer stables
We will address four important themes to assess the pros and cons of that positioning.
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