A buying opportunity

Genevieve Signoret

Letter from the President

Six quick thoughts from Boston:

  1. We think that the current bout of risk aversion is a mere correction. Hence it’s a buying opportunity and does not warrant a change in strategy.
  2. I know it’s hard to put more money into the market when prices are falling, but since when has self-discipline been easy?
  3. Given the (probably) transitory nature of this episode, the dollar has likely overshot against the euro and peso and will correct down some. Likewise, the yen, now starting to spike, will fall back. We hold to our foreign exchange forecasts.
  4. Notice how long-term developed-market investment-grade bonds are soaring. Once again we’re experiencing the benevolent sort of volatility.
  5. With Brent oil down to $88/barrel, why isn’t OPEC cutting production? Perhaps they see global (demand-side) data so weak that they fear a global recession.
  6. Watch third-quarter earnings reports this week.

Previous Letters from the President

Which correlations? (2014 09 20)

5 reasons not to participate in Alibaba’s IPO (2014 09 16)

2014–2016 Outlook: Low for long (2014 08 29)

Should you sell your business? (2014 08 15)

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