Loading ...“History repeats itself, but in such cunning disguise that we never detect the resemblance until the damage is done”.
I present to you the front cover of the Business Week from August of 1979.
You had an underperformance from running ’65 through 1979 where any investors had been handed solid losses. And as a consequence, pretty much everybody who was going to sell had sold. Now, this is what took place thereafter…
Simply by just looking at what was unloved, stripping out the noise and looking purely at the analytical process fundamentals and play, investors who subsequently bought when fear was at its peak, made eight times their money over the next couple of decades without really doing anything else. A $10,000 investment into a simple index turned into about $80,000. You could have done this while sitting on the beach.
Now, I mentioned this not to try and point fingers at people. But today I want to present to you what we’re looking at.
This here is the business week from April of this year.
Inflation is dead, is what they’re hinting at. Two months later, the July edition no escape from lower rates.
And this is why. Take a look at this. Here’s the negative born yield matrix.