We have had four major supply shocks in the past 6 years: COVID, war in Ukraine, tariffs, and war in the Middle East. At some point, these events stop being “exogenous” and simply become the environment we need to deal with.
Supply shocks drive inflation, inflation keeps rates higher, and this combination tends to break assumptions behind traditional portfolio construction. When supply shocks are recurring and supply constraints matter more, the risk isn’t just valuation: CAPEX timelines get pushed back, correlations change, and expected growth gets deferred.
The AI trade can absolutely keep working, but if this is our only engine, we’re implicitly long a system that relies heavily on stability. In our view, the adjustment isn’t to abandon growth, it’s to complement it, which is why we are focused on assets and thematic exposures tied to supply constraints. The idea is simple: if supply shocks are becoming more the norm than the exception, we want our portfolios benefiting from them, not just reacting to them.
Each quarter, Gitterman Asset Management’s Investment team produces a market outlook to address the latest trends facing investors and advisory firms today. This quarter, we will be joined by MacKenzie Davis, Managing Director of SailingStone Capital Partners, to discuss one of our holdings, the Victory Global Energy Transition Fund (RSNYX), a supply-side, long-term value play within resource-driven markets.
We invite you to join us, where we’ll discuss the macro forces shaping the markets and how we translate thematic insight into portfolio action.
*This event is for financial professionals only
**Replay will be available to all who register
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