Investment Strategies

As we have been laying out for the past 5 years, what we are seeing is simply the very logical result of globalization.

For the past 5 years, we’ve been working thru a period where fierce price wars worldwide have resulted in falling profit margins. Because it is a “global” problem, it also means that domestic tax cuts and low interest rates won’t fix it. This is wishful thinking. Regardless, it’s a brutal environment for stocks especially in the U.S. and Europe.

Being pro-active opportunists rather than pessimists, we’ve made strategic moves to profit in this environment. We’ve already shifted over 50% of our assets away from direct exposure to the U.S. stock and bond markets. Offsetting this, we have increased our positions in “global hard assets” such as real estate and commodities and also larger holdings in regions benefiting from low labor costs and state-of-the art technologies.

Good opportunities abound, they just aren’t where most people have been trained to look for them.