This season has shown the value of conservative long term positioning…
We live in hope that the analysts are (this time) correct and we will see significant increases in corporate profitability. But in the next 12 months it is hard to justify a market value that is already at a high level.
As this reporting season has rolled on it has reminded us the value of being conservative. The immediate future is always hard to predict.
During every historic period of low returns there have been sell offs (often decent ones) that have created incredible opportunities to do considerably better than average, and the market.
It is our intention to remain cautious for the time being at these prices, but to wait for opportunities. We will then move quickly.