Dissent in Financial Markets

Good Morning Ladies and Gentlemen

“If I say something right that the wrong people like, then the right thing doesn’t automatically become wrong.“

Andreas Rebers, cabaret artist

Dissent

My preferred definition of “dissent” in financial markets emphasizes the value of differing opinions or views between market participants, analysts, or other experts. These variations can span across various aspects of the financial markets, such as the preference of certain asset classes, the valuation of assets, the direction of share prices, interest rate trends, or the overall economic situation. It’s crucial to understand that having different points of view in financial markets (and everything else) is not only normal but also beneficial, as these are influenced by many factors, including uncertainty.

Consistency

Ladies and Gentlemen, you know, my partners just published their “In Gold we Trust Report.” My last “Stefan’s Weekly” was dedicated to it. Many thanks for the many positive feedbacks by mail and on LinkedIn. I truly believe this report represents an excellent piece of work, regardless of whether one likes gold or not. Personally, I prefer “productive”, i.e. cash flow-producing assets, but I am always intrigued by the quality of my partners’ arguments. However, sometimes, I receive a comment or two from “irritated” friends and/or readers claiming that I was not consistent in my “thinking” by highlighting non-productive assets while otherwise advocating cash flows as “the most important thing”. The only thing I can say is that to me, this is never a question of ideology but common sense. And common sense in financial markets, as everywhere really, is to look at and listen to different perspectives.

Ideology

This brings me back to my “Stefan’s Weekly” from some weeks ago. If I try not to be caught up by ideological thoughts, I very much feel like I can appreciate someone’s work, thoughts, etc., even if I am not sharing every aspect of that person’s opinion. Furthermore, I also think it would be presumptuous to believe that I/we know or understand everything, especially since understanding in the sense of comprehending does not necessarily mean knowing something or someone 100%. Why is it that in today’s world, I almost feel people are obsessed with being irritated, outraged or offended? Ladies and Gentlemen, dissent is healthy! It makes us think and question our own beliefs.

Equities

Of course, I am still a great believer in equity investments. Statistically, no other asset class has performed better over the last 100+ years. Volatility may be an issue for some investors; I do understand that. Yet, in every society, people’s demands are rising faster than the economy allows, and thus, solid companies (and governments) are bound to grow. If I could invest in governments, I probably would, as governments have a monopoly and can raise their prices at will and grow incessantly. Governments produce crazy cash flows. Most of them have a spending issue, but that, I believe, could be taken care of. Anyway, since I cannot invest in governments, I mainly invest in equities of solid cash flow-producing companies instead while trying to stay diversified by using a multi-asset approach.

Today’s quote

I did not choose today’s quote by chance. I very much think the German cabaret artist, musician and composer Andreas Rebers is correct in claiming that if “I say something right that the wrong people like, then the right thing doesn’t automatically become wrong.” By the way, this is also true for politics. Think about it.

Ladies and Gentlemen

As always, please share your opinion with me, but please do not forget (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 the 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