Trading opportunities and an exemplary Investment Model to help meet the challenges of the current environment:
How do you get real yield in an environment of essentially 0% interest rates or negative real interest rates (nominal interest rates minus inflation)?
How do you preserve purchasing power when central banks around the world are intentionally weakening their currencies? How do you preserve purchasing power in a rising inflation environment?
How do you invest in an environment characterized by ongoing central bank and government interventions and ring-fencing regulations?
How do you mitigate potential adverse risks such as defaults, capital controls, protectionism, bank bail-ins, nationalizations, climate change and regulatory capture?
Unique approach to investing using the principles of the Austrian School of Economics
“The Austrian analytical framework is not a prescription for short-term investment success or even a pathway to building a fortune. The Austrian investment approach eschews leverage, promotions, and fads. It is likely to steer one away from disastrous investment outcomes through a balanced approach to wealth preservation. In short, the Austrian methodology is based on reality, not fancy, and its application in daily practice will provide an investor with favorable odds to achieve financial well-being.”
– Austrian School for Investors by Incrementum Fund Managers Ronald-Peter Stoeferle and Mark Valek and Incrementum Advisory Board Members Heinz Blasnik and Rahim Taghizadegan
“Interfering with freely determined market prices sends the wrong signals to economic actors. When a central bank suppresses the price of credit – interest rates – bad things happen. To quote James Grant, ‘This is like turning all the traffic lights green.’ One possible result of this is inflated asset prices and an unsustainable boom. We also know to look for areas of mal-investment on the short side, typically long-term grandiose projects or consumer goods where long-term financing is offered. On the long side, it suggests we keep it simple and invest in basic necessities like food and affordable luxuries like beer.”
– Bill Laggner and Kevin Duffy, Bearing Asset Management