Investing legend Rob Arnott shares 3 trades to exploit underappreciated ‘asymmetries’ in the market right now — and 6 cheap investments he’s betting will deliver ‘double-digit’ annual returns over the next decade

• Rob Arnott predicts inflation is more likely to surprise to the upside and growth to the downside.
• Value stocks, TIPS, and alternative investments are good hedges for these outcomes, he said.
• Looking long term, he said US small-caps and MLPs are among areas priced for high returns.

When it comes to future outcomes on two of the market’s most crucial inputs — inflation and economic growth — Rob Arnott says investors are underappreciating asymmetrical risks.