Cough up… Why your clients owe Treasury 7000 Big Macs, each
The growing disconnect between asset prices and personal incomes is testing fund managers’ resolve insofar sticking with their medium- to long-term asset allocation strategies. Jacques Plaut, a portfolio manager and equity analyst at Allan Gray, recently described the difficulty in remaining invested in the sweet spot of financial markets against a backdrop of investor exuberance and irrationality. By way of example, had you or your clients asked Google the leading question: ‘Should I invest in…’ early in 2021, the search engine would have auto-filled your query with suggestions like Bitcoin, Ripple and Ethereum more readily than equities like Amazon or Woolworths.