„Die Nullzins Falle“

Dear Ladies and Gentlemen

Due to the Easter weekend I decided not to send out my weekly last Friday.

 Now, today I would like to mention a book called “Die Nullzins Falle”. My partner Ronald P. Stöferle acted as one of the three co-authors of the book. As the title suggests “Die Nullzins Falle” describes the authors’ views on long-term socio-economic effects of the current ultra-low interest rates. The book takes on purpose a rather critical view and intends to elaborate on the riskier, more unpleasant, maybe even dangerous side of current monetary policies.

 The book certainly makes an interesting read and it can be ordered in any online bookstore under the ISBN number: 978-3-95972-019-9.

 These days I receive a fair number of messages and phone calls from private clients and investors. As we are approaching new highs in the markets one part of the people calling me or writing to me suggests a sudden market crash, while the other half is seeing even higher prices.

 I simply don’t know where the markets are heading but I must admit I like taking profits and that is exactly what I am doing now. I sell bits and pieces here and there. I am selling small positions into the strength. Taking profits is a very satisfying thing to do and even if I may miss out on another up-move, I simply don’t care. Just to be clear, I am not liquidating any portfolio but am rather selling very small positions here and there and only into the strength.

 While I am currently a net seller of equities, I am still a buyer of equities of companies that seem somewhat out of favour. However, even the companies I am currently considering as add-ons to the portfolios always have to be net free cash-flow positive and not suffering from any negative structural issues. Sticking to that rule I might have to wait a little until such companies’ equities will be traded up again at some time in the future but until then the positive cash-flows will deliver cash returns on capital invested.

 What is your opinion, will we see a major market correction or soaring markets? Let me know about your investment style and please share your investment experiences with me and my readers, 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,

Stefan M. Kremeth
Wealth Management
Incrementum AG