Investing often begins with a question. Precisely what that question is, however, will be determined by a range of factors – your appetite for risk, your investment philosophy or, perhaps most importantly, your time horizon. For example, if you’re comfortable making short-term calls on asset allocation and believe you possess the gift of timing the market, you might start by asking:
– Where are valuations most attractive?
– If interest rates fall, which markets would benefit?
– If the dollar continues to weaken, where might US asset owners redeploy their capital?
Alternatively, if you prefer to take a longer-term view, you might ask:
– Where do demographic trends support corporate profits?
– Where do long-term human development trends give companies a runway for growth?
– Where are debt-to-GDP dynamics supportive rather than restrictive?
At Stewart Investors, we don’t claim to have any edge in timing the market. And although we incorporate analysis of long-term trends into our thinking, we believe our advantage lies in identifying high-quality companies and being sufficiently patient to allow them to compound wealth on behalf of our clients. Because we focus on finding and backing high-quality companies, we tend to ask:
– Which are the world’s highest-quality, most innovative companies? And where are they most attractively valued?
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Supporting documents
Click link to download and view these filesEmerging markets: The answer to more than one question
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