🎁What is the gift that, Christmas 2020 is giving to all investors⁉️ Let’s find out the answer in #MBMG December Outlook
✴️Key Highlights from #CNBC TV
by Paul Gambles Co-Founder of MBMG Group
In our December monthly outlook for our clients, we quoted The Pogues’ Fairy Tale of New York ⭐️ because we seem to be living through a fairy tale of the New York Stock Exchange, but the reality is, potentially, much more grim and yet all the markets seem to want to do is sing a happy Christmas song. 🎄
I get it. Everybody wants 2020 to end. but there’s no guarantee that 2021 is going to be miraculously some somehow better.‼️
In the grim reality we get things like weaker employment numbers, rising COVID death numbers and the spiralling infection numbers on a daily basis. Against that kind of backdrop, markets that are priced to perfection seem to us to be a real stretch and a potential accident waiting to happen.
🔰Markets get excited about stimulus package, but even if that passes, it’s not going to be a stimulus package that addresses the underlying issues. Markets get happy about Brexit, but you know what, even if Brexit happens as well, we still have the UK and this particular Johnson government with all the problems that it’s unable to deal with and the EU under the ECB and all the EU policymakers who don’t know what to do either.
🔰We could end up with a positive 2021, and we could be sitting here in a year’s time saying, “Oh my God, why are markets so high when we have all these problems?” Or it could be that, at some point, reality bites in between now and then.
This isn’t an absolute, ‘no, let’s go and short everything tomorrow’ call from us. It’s very much that some things are priced to perfection and it’s not clear to us at what point markets are going to realize it’s not a perfect world out there.
🔰The one gift that, Christmas 2020 is giving to all investors is that anti-fragile assets are now really good value, so if you buy enough of those into your portfolio to balance your risk, then you don’t actually have to guess when things are going to go right, or things are going to go wrong. Somebody who’s got a perfect crystal ball and knows what’s going to happen in 2021 and when, is going to absolutely shoot the lights out. We don’t have one of those crystal balls. I don’t know anyone who does.
What we’re saying is we can see the problems.
We can see the opportunities.
You can benefit from the opportunities, if you have equity beta, and even more so if you add equity alpha, while you can protect yourself against the downside by taking advantage of the fact that these anti-fragile assets are so cheap and offer so much portfolio protection right now. So there’s no need to be on the side-lines.
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If you’d like to make sure you understand the outlook,
📧 email info@mbmg-investment.com to receive the latest MBMG December outlook Update‼️
