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From the blog

The Advisor – Winter 2023 – A Journey

These quarterly missives often concern journeys into the future. The way is always uncertain, the destination opaque. What may help guide us for-ward is an awareness of where we have been. With driving, the rearview mirror is incredibly useful for manoeuvring a vehicle – but to rely on it solely for steering is dangerous and stupid.

Since the financial crisis of 2007 – 2009, investors have dealt with the distortions created by Zero Interest Rate Policy (ZIRP) and Quantitative Easing (QE) separating the financial markets from economic fundamentals. Today’s markets are not moved by economic fundamentals but are driven by liquidity, momentum and short-term emotions. For the last fifteen years, investors have become inured to this environment and expect, after the steepest rise in interest rates in decades, a return to “normal”.

Read the Winter 2023 Advisor