Winter

Dear Ladies and Gentlemen

The SMI is down 7.7% so far this year, the Euro Stoxx 50 is down 13.09% so far this year, the Daxx is down 16.31% so far this year, Gold is down 4.79% so far this year, Silver is down 14.33% so far this year, Brent Crude Oil is down 10.91% so far this year and theses are by far not the worst samples. This looks like winter to me.

Ladies and Gentlemen, often I get asked why I would not mention any of the American indices. The reason for this is that we (for some years already) do not invest in American equities for our private clients and the reason we do not invest in American equities for our private clients is risk management or to some extent lack of trust. Investing always involves a risk management component and while we are fully aware of the fact that without taking risk, we cannot expect return, we still try to manage that risk according to our believes. Now, the U.S. has been acting (and not only very recently) with business partners and governments globally in a not always very trust inspiring way that has on one side been very efficient to the American authorities but on the other side been between difficult and maybe even devastating to some of those other nations and/or business partners around the globe and this is why we are of the opinion that our private clients should have the smallest exposure possible to the risk of changes of laws and/or common practices by the American government, tax authorities, Securities and Exchange Commission, etc. By investing in global enterprises incorporated outside of the U.S. our private clients already take an indirect risk of such changes and to us this is already plenty.

Now, if I use the “farming” metaphor of my last week’s weekly mail, please allow me to stretch it just a little more and add the four seasons into it and if I do that, I think we have approached the end of fall and/or the beginning of winter.

As I mentioned many times before, volatility is nothing unusual, just normal market behaviour and an unpleasant part of investment risk any investor has to live with.

Now, winter is also the time to repair your tools, check your crop, prepare the grounds so that you are ready for the planting/seeding season.

If I convert this thought into portfolio management you want to ask yourself if you still have the portfolio you want/need and if not, you want to take action and make some adjustments. There are good investment opportunities out there, the difficult part is to pick them and to pick them at the right time.

Please do not hesitate to share your thoughts with me on the interview or on whatever seems interesting or bothering to you. Please feel encouraged to do so but please don’t forget (instead of hitting the reply button) to send your messages to:

smk@incrementum.li

Many thanks, indeed!

And now, Ladies and Gentlemen I wish you a great day and weekend.

Kind regards.

Yours truly,

Stefan M. Kremeth
Wealth Management
Incrementum AG