Rising Inequality

As we all know, rising inequality is becoming a rather fast rising problem. When we invest, we want to benefit from issues and developments we see in the future. This portfolio will focus mainly on the upper and lower class, as we expect that the middle class will decrease, therefore there will be one part moving to the upper class, consuming more expensive products and a larger share will move to the lower class, only able to consume rather cheaper products, provided by different companies. Therefore, we try to get an exposure in the luxury sector as well as the lower tier sector, through which we expect to generate alpha. As we actively manage this portfolio we will also try to hedge ourselves against tougher times in the market and therefore also trade derivates or hold a larger share of cash if we think that appropriate, otherwise the focus lies on equities. When trading derivatives, we will try to delta hedge, so basically just hedge our exposure to the market rather to try to achieve higher returns with an extraordinary leverage, this wouldn't fit our preferred risk exposure.