from his office in Florida. “There were a lot of telltale signs: when there’s retail mania in most risky names, crypto, the IPO scene, retail inflows – these are all typical signs of late cycle, not early cycle.
The firm’s aggressive shift away from technology has seen more capital allocated to base metals, utilities, healthcare and staples.—But Jain is most bullish on the energy sector because of the underappreciated necessity of fossil fuels in the transition to a net zero economy. Jain points to ExxonMobil as an attractive stock in the sector after the company last week posted its largest profit since 2014.
“You look at the underpinnings in countries like Brazil, India, Indonesia, Mexico and Russia, minus the geopolitical uncertainty, and things are mostly on the positive side,” Jain says. Perhaps the most attractive opportunity in emerging markets is Russia, Jain says, but that opportunity comes with enormous risk given the bubbling geopolitical tensions.