11/10/2021
We have gradually positioned ourselves for several major strategic turns. These are some turning points that will occur over a few quarters and then characterize the markets for a few years. Therefore, one must be long-term.
We are now financially and marketwise in a situation that is incredibly reminiscent of 2001 and 2002. The warning lights in parts of the markets have been flashing for a long time, and the common denominator is a massive overinvestment in the digital world at the expense of underinvestment in the concrete and physical world. Among these, there has been an underprioritizing of value shares, small cap shares, emerging markets, and several other asset classes in the market. The difference in the valuation of value shares and growth shares, for example, is extreme.
Byron Wien (Blackstone vice president and former Morgan Stanley strategist investors) to an interview with CNBC “that the stock market ran off the fundamentals and that this is the reason for the current stock dips. If companies' earnings can live up to expectations in 2022, the broad S&P 500 index could rise by 5-10 per cent. over the next year, he estimates. However, the stock market will only continue to move upwards at a moderate pace, assesses the investment veteran, who is at the same time convinced that "the time with a 20 percent return is behind us."
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