“I'm not lost for I know where I am. But however, where I am may be lost.”
Submitted by DeDora Capital on August 25th, 2016by Will Becker, AWMA/AIF
The National Park Service turns 100 years old this week, and they are celebrating by making entrances to all national parks free of charge between August 25 and August 28 - so go enjoy the great outdoors this weekend!
Investment Perspective
One of the many joys of having a 5 year old kid is that I have every possible excuse to read kid’s books. So the other day I was reading Winnie the Pooh, and in the scene Winnie says “I'm not lost for I know where I am. But however, where I am may be lost.” That’s it! That’s what Interest Rates and the current European Equity markets are doing! Just because I-know-what-they-are-doing doesn’t mean what-they-are-doing is any less crazy.
So with Winnie the Pooh in mind, here is an homage to seeking truth from a variety of sources. While, as the cartoon below says, “The wise man seeks truth far from Central Bankers,” it makes an awful lot of sense to watch what those Central Bankers are doing. In investing, we have a related saying: Don’t fight the Fed. If the Federal Reserve (or Central Bank elsewhere) is going to insist on propping up the economy, it’s usually best to surf that wave. Central Banks can be catastrophically wrong and they certainly disagree. But when they pump $1B into a $16T economy such as the European Union… it’s worth noticing. Especially when the European Central Bank decides to branch out from sovereign debt, and buy $20b in Corporate Debt in three months. It is also worth paying attention to whether they are painting themselves into a corner (cartoon #2 below). With that in mind, I couldn’t help but notice when the head of credit strategy at Citi asked central banks to "think not of potential, but of sustainability."
This commentary on this website reflects the personal opinions, viewpoints and analyses of the DeDora Capital, Inc. employees providing such comments, and should not be regarded as a description of advisory services provided by DeDora Capital, Inc. or performance returns of any DeDora Capital, Inc. Investments client. The views reflected in the commentary are subject to change at any time without notice. Nothing on this website constitutes investment advice, performance data or any recommendation that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person. Any mention of a particular security and related performance data is not a recommendation to buy or sell that security. DeDora Capital, Inc. manages its clients’ accounts using a variety of investment techniques and strategies, which are not necessarily discussed in the commentary. Investments in securities involve the risk of loss. Past performance is no guarantee of future results.
Disclosure: This commentary on this website reflects the personal opinions, viewpoints and analyses of the DeDora Capital, Inc. employees providing such comments, and should not be regarded as a description of advisory services provided by DeDora Capital, Inc. or performance returns of any DeDora Capital, Inc. Investments client. The views reflected in the commentary are subject to change at any time without notice. Nothing on this website constitutes investment advice, performance data or any recommendation that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person. Any mention of a particular security and related performance data is not a recommendation to buy or sell that security. DeDora Capital, Inc. manages its clients’ accounts using a variety of investment techniques and strategies, which are not necessarily discussed in the commentary. Investments in securities involve the risk of loss. Past performance is no guarantee of future results.