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Peter Weidner, senior portfolio manager at Wells Fargo Asset Management in San Francisco, joins Paul Craig and Hinesh Patel to discuss what light quantitative models can shed on the elevated levels of equity volatility that have characterised September’s markets.
As Peter explains, whether you’re shopping for value or growth opportunities the emphasis must be on quality companies – those with robust balance sheets, cashflows and margins with the pricing power to pass on cost increases to the end customer.
At the margins, adding to companies with real assets, such as real estate or utilities companies, can also help investors to deal with inflation, but quality companies remain tantamount as there are just too many unknows currently in the system.
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