InvestNow News 11th Oct – Pie Funds – A message from Mike: Keep your eye on the bull
3rd October, 2019 – Mike Taylor, CEO
Strong gains in Australasian funds
Dividend, Emerging and Growth 2 had another record-setting month, all pushing to new highs. Recently, I discussed with investors how Pie handles market uncertainty. For us, uncertainty = volatility = opportunity = return. Earlier this year, the Australasian team took advantage of the sell-off from 2018 to get set in key positions (while remaining cautious). This resulted in strong gains YTD. Today, we see a lot of uncertainty in the United Kingdom (UK) and believe our UK and international funds can take advantage of this situation and see us well placed once BREXIT resolves. Often the best-performing markets have been dire in previous years. So, you shouldn’t be surprised to read (in Forbes Magazine) Greece has the best-performing stock market in 2019, up nearly 45% so far.
uncertainty = volatility = opportunity = return
How tall will the bull grow?
Much has been made of the length of the current bull run. I’ve often been quoted saying “we are closer to the end than we are the beginning”. I still stand by the comment; I think it’s obvious, considering the US bull market turned 10 this year. However, this is also one of the most hated bull markets of all time. Many investors are not participating fully or treading very cautiously throughout. It’s been a nervous bull, rather than the rampaging bull we’ve seen in previous euphoric periods such as the mid ‘80s or late ‘90s. With healthy skepticism and without widespread participation, it’s hard to argue the current equity bull run is a bubble. More likely, equities have risen because earnings have gone up and interest rates have fallen. That might sound obvious, but it’s fact.