Ideology

Good Morning Ladies and Gentlemen

«You can always tell when a man’s well-informed.
His views are pretty much like yours.»

Bob Hope

No big fan

I receive many emails from readers who seek total financial protection from the next financial crisis, global economic crisis or worse, World War III. The ones following my “Stefan’s Weekly” for the last few years know I can not think much of this. Unfortunately, there is no such thing as total protection in life. I too, do like to have some protection, like a place I own and live in, insurance and healthcare coverage, some small bills of different currencies, some physical precious metals in small denominations, water and food. However, hoarding such assets and perhaps even cryptocurrencies in vast amounts is not my thing and is far too ideology-driven for my taste.

The world off the rails

If the world goes off the rails as some people may think it will, one can perhaps buy a lot with very little precious metal and the like and maybe even become relatively wealthy for some time. However, if such a scenario comes to pass, I have no difficulty imagining the new world currency would be “food” and “shelter”. In such an environment, large cohorts of humanity may fall back from the top of Maslow’s pyramid of needs to its bottom, and I fear that even by owning so-called hard assets, you may not be able to escape any of this. Civil wars, brutalisation and perhaps a prolonged global conflict could follow as probable scenarios. Yet, I do not believe at present in such a development.

My rather personal view

I have absolutely no understanding for people who indulge in disaster romance. In such thought games, I see an outgrowth of boredom of a spoiled, somewhat too wealthy, and without reasonable tasks living small cohort of people who believe to know it all. I hope you, Ladies and Gentlemen, dear readers, will not associate with such people. It cannot possibly make you happy to think about such dark scenarios.

Furthermore and conclusion

From an investment point of view, it certainly makes sense not to put all eggs in the same basket. Alternatively, it probably makes sense to try weighing the probability of your scenarios and not only trying to protect yourself from tail risks with your entire fortune. Also, I believe it makes sense to keep ideology out of your investment principles. Think about it.

Seasonal Reflections

Moreover, Ladies and Gentlemen, Incrementum’s top performer on the fund management side, Hans Schiefen, publishes his “Seasonal Reflections” every quarter, hence the name. Last week, I quoted him or someone he had quoted in the latest edition of his thoughts on paper. One or the other of you asked me if I could add a link to the full paper, which I gladly do. Please feel free to click on the link below for your convenience:

Incrementum All Seasons Fund Seasonal Reflections – 2023/03 – Incrementum

As always, my thoughts do not necessarily fully match Hans’ or anyone else’s. This is why, at Incrementum, we have lively discussions during our asset allocation meetings.

Your point of view
Ladies and Gentlemen, please share your opinion with me, but please remember (instead of hitting the reply button) to send your messages to: smk@incrementum.li.

Many thanks, indeed!

I wish you an excellent start to the day and a wonderful weekend!

Yours truly,

Stefan M. Kremeth
CEO & Head of Wealth Management
Incrementum AG – we love managing assets

Tel.: +423 237 26 60
Cell: +41 79 303 48 39
Im alten Riet 102
9494 Schaan/Liechtenstein
Mail: smk@incrementum.li