Dear Investor
Please note the following points when considering whether or not to invest:
• It is highly probable that the expectation of a sudden spike in interest rates is overdone and as a result property stocks may recover and certain cash flush retailers may continue to climb
• The stock market cannot be grouped as one entity as different sectors exist and not all sectors have high P:E’s
• IMF continues to expect lower growth than reality – this may simply be the result of the general mood toward global cautiousness. In this regard, much fear remains priced into equities which is good as opposed to there being a mood of excessive optimism
• QE is not gone and even though tapering exists, the printing of money remains high by historic standards
• Commodities seem to have bottomed
• Emerging markets are not as fragile as they were pre 2001
• Finally, Investing is all about beating inflation and your fixed deposit/ money market investments are losing substantial real value over time and please don’t confuse volatility with risk
