Samuel Lau of DoubleLine - Fixed Income Asset Allocation

What this episode covers

Throughout history, there have been different schools of thought regarding investing. Some investors believe in taking on more risk to achieve higher returns, while others prefer preserving capital and generating stability. In this current economic climate, however, many investors are worried about the stock and bond markets and how they will affect their investments.  In this episode, Rusty and Robyn talk with Samuel Lau. Samuel is a Portfolio Manager on DoubleLine's strategic commodity strategy while working in portfolio management and trading for derivatives-based and multi-asset strategies, including DoubleLine's Shiller Enhanced CAPE®, Shiller Enhanced International CAPE®, Real Estate and Income, and Multi-Asset Trend strategies. He also co-hosts the Sherman Show and the Monday Morning Minutes podcasts. A fixed-income asset allocation strategist, Samuel talks with Rusty and Robyn about the fixed-income market, the headwinds facing the bond market, and the inflation and Federal Reserve policy. Key Takeaways [03:43] - Among the many roles Samuel plays at DoubleLine. [07:48] - What Samuel has learned from podcasting. [09:03] - One of Samuel's favorite episodes. [11:00] - What Samuel thinks about the stock market and bonds. [12:59] - DoubleLine's view on inflation. [16:21] - What DoubleLine thinks about the Federal Reserve policy. [19:28] - A possibility of an economic recession. [23:55] - How Samuel considers geopolitical risk when building portfolios. [27:29] - Samuel's outlook for interest rates. [31:05] - An overview of investment-grade corporate bonds. [35:56] - Samuel's perspective on emerging market debt. [37:12] - Diversifying portfolios with real assets and low volatility assets. [40:23] - Samuel's forecast for the stock market. [42:47] - Why investors should consider fixed-income investments. [44:47] - Samuel's personal investment strategy. [45:48] - How Samuel maintains his mental and physical health to perform at his peak. [48:02] - The people Samuel is grateful for on a professional level. [49:48] - Samuel's recommendations for content. Quotes [12:06] - "On the bond side of things, it's very painful. It's the worst year-to-day performance in the U.S. bond market on record going back to the index's inception. But investors have their heads wrapped around the rationale behind it." ~ Samuel Lau [17:48] - "We all fear the risk of the Fed and the FOMC over-tightening through their rate hikes and sending the economy into a hard landing, which people would refer to as a policy mistake." ~ Samuel Lau [38:32] - "When you look at the positive performers, commodities are one of the two asset classes that have that plus sign in front of it on a year-to-date basis. The other asset class is the U.S. dollar." ~ Samuel Lau   Links  DoubleLine Rock and Roll by Led Zeppelin Jeffrey Gundlach The Sherman Show Jeffrey Sherman Monday Morning Minutes Robert Shiller Mary Daly Federal Reserve of San Francisco Nick Timaraos The Wall Street Journal National Bureau of Economic Research Grant's Interest Rate Observer DoubleLine Capital on YouTube Channel 11 PS Perspective Connect with our hosts Rusty Vanneman Robyn Murray Subscribe and stay in touch Apple Podcasts Spotify Google Podcasts 2077-OPS-11/1/2022