Investment growth is slowing down for several reasons but the main reason is bad leadership. Global leaders have failed the economy and therefore the public, they have not managed the world’s economy prudently and we are paying the price. The rich are getting richer and the middle class is getting squeezed. Politicians, central bankers and large corporations have been looking after themselves and that is why Trump won. People are angry and fed up; tired of false promises and poor performance.
Standard of living is lowering
The average person’s standard of living has not improved over time. In fact, it has got worse, people are suffering. Trillions of Dollars was thrown at the financial crisis, but the real economy or real people have not benefited from the bailout of large financial institutions with tax payer’s money.
CEO’s paid themselves large bonuses with rescue money from the public.
The recovery from 2008 was inflated
The stock market recovered significantly from the financial crisis and that’s the problem. We have had a fantastic run since 2008 but the stock market recovery was not real, it was inflated by the authorities. The market got too ahead of itself, which is part of the reason why there is too much uncertainty in the world right now. People are worried.
Confidence levels are low and Sentiment is negative.
How to deal with low performance
At Stringfellow, we follow Warren Buffett’s investment philosophy. We model other people’s great success. Mr Buffett does his research and does not get swayed by sentiment. He invests in great businesses with great management and invests for the long term.
When sentiment is negative, he gets positive. He gets greedy when others are fearful. We suggest that investors don’t get caught up with all the negative noise. Do your research and make informed decisions based on fundamentals and not speculation. Stringfellow has identified sound opportunities for the long term.
How Stringfellow continues to outperform its peers
We are not trying to predict or time the markets. We have done our research and we continue to manage our clients’ risk, continuously seeking sound investment opportunities. We are very confident about our long-term positioning and we strongly suggest that investors follow sound investment principals and remain disciplined.