From a very prominent fund manager’s monthly performance update, the following is an extract from their market Outlook section:
“In terms of how the dynamics of countervailing forces between valuations and the fundamental backdrop plays out, we suspect that wages growth and inflation will be a key determinant, particularly in the US where the economic cycle is most advanced. We remain sanguine overall. “
Reading that sort of explanation makes my head hurt….and I’m trained! It takes about 5 minutes to interpret the actual meaning, so here’s my translation:
“There a lots of influences on markets, they are confusing, the cycle is nearing an end, but our best guess is that things are still good in equities. So…keep investing!”
It’s a common type of “fund-manager-splaining” (I invented a word) for everything is awesome, keep taking risks, because, well, that’s how they make money.
Consider risk very carefully and seek advice on your portfolio from someone who doesn’t profit from such a hopeful, and needlessly wordy, analysis.