There are a handful of investors that have risen above everyone else over time. Peter Lynch was one of the titans of investing. Peter ran the Fidelity Magellan Fund from May 1977 to April 1990. Over that period, the Magellan Fund was the top performing equity fund. His “invest in what you know” approach is quite similar to what we preach with the top global brands approach to investing.
We have all heard the adage, “the stock market is a discounting mechanism”. Stocks tell a story of the future long before the facts confirm it. Most growth stocks peaked in late 2021 and have experienced significant drawdowns ever since.
We have all heard the adage, “the stock market is a discounting mechanism”. Stocks tell a story of the future long before the facts confirm it. Most growth stocks peaked in late 2021 and have experienced significant drawdowns ever since.
There is no right or wrong way to build an investment portfolio. Rather than spreading money across style boxes simply using backward looking performance data, which is a typical approach, we think there's a more thoughtful strategy that can add attractive diversification benefits and enhance returns over time. Loosely, this strategy is named, "thematic investing."
So far in 2022, equity markets have been extremely volatile with a bearish trajectory amid economic uncertainty, monetary policy tightening, recession fears, inflation, and geopolitical tensions. Despite all these macro headwinds weighing on equity underperformance across market capitalizations, there remains one word that investors must keep top of mind to recover equities’ losses: “change”.
As the Fed continues to push interest rates higher to combat inflation (today announcing a 0.75% increase), investment professionals from across the Catalyst Funds and Rational Funds network weigh in on what this could mean for investors:
For months, investors have been scaling what feels like an endless wall of worry. Each concern that gets resolved seems to spawn new uncertainties, yet the market has continued its relentless climb higher.
We’ve lived this movie before. Last August, AAII bullish sentiment struck a 52-week high right before the Fed launched its September rate cutting cycle.
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