“What the wise do in the beginning, fools do in the end.”

March 4, 2019

A quote from world renowned US investor Warren Buffet. His view is that when the wise (unfortunately this denotes a minority) find a new idea that is successful you will often have the rush of the fools (again, unfortunately the majority!) latching onto the idea or investment. This often comes at the end of the success story as the ever-wiser move on.

Investment is the one area in life where we find that the same “mistakes” often repeat, some in quick succession, some take many years, but there is a constant herd mentality within investments and “bubbles” all too often appear.

2019 has been a year so far where perhaps the fools are flocking, as we forget the issues surrounding Q4 of last year, and blind optimism is back. It certainly feels as though markets are moving up, but we know little more than we did in 2018. Signs of a creaking global economy are now here, but if the US is still chugging along everything is fine…right?

Our view at Clear is that we push to a fairly “neutral” point now. There does seem to be signs of a slowing economy globally and as such we have taken a little risk off the table. Perhaps a little wiser than most at this time!