After a short break meeting friends, partners and interesting people along the way, I’m finally back at my desk. Well just in time for the markets to remind us that they never take holidays.
Technology stocks have suffered a sharp correction and at the same time, geopolitical tensions have continued to intensify, adding another layer of anxiety to already fragile market sentiment. When politics and markets decide to compete for headlines, investors rarely get a quiet day.
Adding to the uncertainty, Fed Chairman Kevin Warsh has, in my view, failed an important credibility test. Warsh’s post-meeting comments offered markets far fewer clues about the likely path of future interest-rate moves. Credibility, once questioned, is not easily restored.
Come on, any good news YH? The good news is that turbulence is part of investing. Markets have a habit of swinging between euphoria and panic far more quickly than fundamentals change. While the headlines may feel dramatic, periods like these often create opportunities for disciplined investors who can separate noise from reality.
Amid the volatility, I have also put money to work by adding a new gold position to my long-term portfolio. I do not expect the world to end and yes, I’m still bullish. I will be looking to add new positions in the coming days.
There will be a number of calls next week where I will be sharing my thoughts on what has happened, what it means for portfolios, and where I see both the risks and opportunities ahead.