No Doubt Investors
[…] Investors today have these inviting memories of low-inflation, stable bond prices and booming stock markets. The flip side of these are “altogether mighty frightening.” Plausibly negative equity returns, bond losses and an end to euphoric animal spirits is frightening. As our Chief Investment Officer, Bill Smead (occasionally called dad) recently wrote in his piece “Inflation is a Wolverine,” the inflation that we are seeing is a wolverine. There is no natural predator to kill it off. It’s not a cute, adorable puppy. The only thing adorable in 10 years will be listening to the stories of investors that thought they wouldn’t have to deal with prior tough equity eras like the 1970s and 2000s. We refer to these as stock market failure. Many millennials that have just begun their investing journeys will have their “head” in their “hands” while they “sit and cry.” […]
