2020 was a year of punches. 2021 is hopefully the year where humanity demonstrates its incredible resilience. My hope is that our partner firms will guide their investors to take advantage of the opportunities that have presented themselves in the aftermath of the COVID 19 pandemic and subsequent response. The response which saw record amounts of money supply flood the market to keep asset prices elevated. A response which resulted in rampant speculation in global stocks. A response which accelerated the largest asset price bubble in the history of the US economy.
The opportunities are plentiful, but we believe they are not where most are looking. What has worked over the last 10 years has been investing in primarily large US publicly traded equities. The best performing index was the Nasdaq 100 as the Fed’s continued rolling QE program and global central bank asset purchases created a massive incentive to buy duration. Therefore, growth assets (i.e. the Nasdaq 100) were direct beneficiaries. The Swiss National Bank’s top five holdings are all US technology stocks, with the largest market capitalizations in the world.
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