As Mark Twain said: “When I was a boy of 14, my father was so ignorant I could hardly stand to have the old man around. But when I got to be 21, I was astonished at how much the old man had learned in seven years.”
What more can I say about self-delusion? Most of us humans are naturally conditioned to remain in denial for a long time. We surrender our present realities only grudgingly.
We are likely undergoing this reality transition in plain sight. Relatively volatile, range-bound markets over the past couple of years are proof.
This economic season transition likely leads us to a moderate for more regime. Moderate inflation. Moderate interest rates. Moderate returns per unit of risk.
And of course, while our portfolio remains moderately balanced in the near term as indicated in the 3Q23 Factsheet below, we remain prepared and keen to take advantage of any market dislocations over the next few months.
