Eric Clark, Portfolio Manager

As a reminder, each December our team at Accuvest goes through a rigorous process to update the investment universe for the Dynamic Brands equity strategy. The result is a 200-company list called the Alpha Brands Consumer Spending Index. 90% of the 200 brands are domiciled in the U.S. and 10% are international brands. The majority of the 200 leading brands have sales that come from outside their local borders. That is the nature of being a global brand. Why do we anchor to a smaller sub-segment of the market for our investment universe? Because we are singularly focused on the massive portion of global GDP that comes from household and business spending. This component accounts for more than 60% of global GDP or roughly $44 trillion each year. If the definition of “core” is: the most important part of something, could there be a better core equity choice than something tethered to the largest portion of global economic activity?

In case you missed last week's blog, I'll start with the same theme. There's been significant damage to asset prices in 2022. Last year was one of the most difficult environments for investors in almost every asset class. Here's the updated 60/40 portfolio yearly scorecard going back in time via a recent report from Private Equity leader, KKR:

In case you missed last week's blog, I'll start with the same theme. There's been significant damage to asset prices in 2022. Last year was one of the most difficult environments for investors in almost every asset class. Here's the updated 60/40 portfolio yearly scorecard going back in time via a recent report from Private Equity leader, KKR:

As you know, interest rates and inflation have been on the rise and the trajectory has been severe. It's important to remember that the inflation we have today is largely man made and the trajectory of rates and inflation is the "accident" that caused all the chain reactions in asset prices. We can thank our politicians and the Federal Reserve for higher prices and the carnage in our investment portfolios. It didn't have to happen this way. I could write a separate blog on the arrogance and ineffectiveness of the Fed as an organization but suffice to say, the real problems likely began when Ben Bernanke arrived at the Fed in 2006. The trio of Bernanke, Yellen, and Powell has consistently gotten important decisions wrong, failed to see trouble when it was obvious to others, acted too late, and stayed easy far too long. It seems absurd that any central banker could be successful at smoothing the business cycle, let alone for Powell and Co. to accomplish this for a $21 trillion economy.

As you know, interest rates and inflation have been on the rise and the trajectory has been severe. It's important to remember that the inflation we have today is largely man made and the trajectory of rates and inflation is the "accident" that caused all the chain reactions in asset prices. We can thank our politicians and the Federal Reserve for higher prices and the carnage in our investment portfolios. It didn't have to happen this way. I could write a separate blog on the arrogance and ineffectiveness of the Fed as an organization but suffice to say, the real problems likely began when Ben Bernanke arrived at the Fed in 2006. The trio of Bernanke, Yellen, and Powell has consistently gotten important decisions wrong, failed to see trouble when it was obvious to others, acted too late, and stayed easy far too long. It seems absurd that any central banker could be successful at smoothing the business cycle, let alone for Powell and Co. to accomplish this for a $21 trillion economy.

Most investment portfolios in the U.S. have very little direct exposure to emerging markets in general, and India in particular. As global investors in iconic b2b and b2c brands, one of the key themes we are excited about, is the expansion of the emerging middle class across the world.

Most investment portfolios in the U.S. have very little direct exposure to emerging markets in general, and India in particular. As global investors in iconic b2b and b2c brands, one of the key themes we are excited about, is the expansion of the emerging middle class across the world.

Millennials and Gen-Z are likely the primary beneficiaries of the wealth that's being transferred from Boomers & their parents. I've seen it firsthand across my friend cohort, a handful of friends have been the beneficiaries of some large pools of assets as their parents and grandparents pass away and their assets get passed down.