Hérens Quality Asset Management AG

Review - Quality - a safe harbour during inflationary times

2021 was another peculiar year, not nearly as wild as its predecessor, but it nevertheless required investors to stay alert, sharp and sometimes sleepless at nights. Although world is still far away from being Covid-free, global vaccine roll-out has somewhat restored the life as we know it, which brought another problem to the table – capacity bottlenecks, component shortages and supply-chain disruptions.

What initially started in automotive sector that suddenly found itself lacking chips, has then gradually spread to other sectors and now construction, agriculture and even household goods are struggling to get their hands on shipping containers, secure warehouse capacity and find drivers to move their products around. In October, which is a peak month for Q3 earnings season in US, executives of S&P 500 companies have mentioned “supply chain” phrase the record number of times. As firms moved closer to the holiday season, the number one question that occupies everyone’s mind is if those bottlenecks will eventually become the “Grinch that stole Christmas”.