Understanding Markets
The annals of history are replete with tales of investors being stretchered, feet first out of the financial markets, hemorrhaging money from fatal injuries sustained after failing to understand the irrepressible power of fear & greed and its effect on market direction.
Fear and greed drive many investors into making irrational investment decisions such as acquiring assets at inflated prices simply because everyone else is buying or dumping assets after the market for them has hit rock-bottom in order to invest in low-risk, low return assets that have little or no chance of rebuilding what has been lost.
Of course, far more lies behind the vagaries and machinations of “the market” than this but, at its core, these fundamentals are the embodiment of human emotion and the investor who fails to make allowances for these drivers and their effect on fellow investors is likely to find his or her market encounters shockingly brief, not to mention acutely painful.
Nevertheless, it is the ability of our professionals to distill these emotions from their decision-making process that lies at the heart of our success. Our objective, dispassionate approach is akin to the eye in an increasingly turbulent and stormy market.