Investing low on the value chain

ISSUE 4th February 2022 | John Butler

Last month I introduced the theme of a “Bear Market in Trust” that was likely to impact financial markets throughout 2022. Sure enough, stock markets have stumbled somewhat in recent weeks, for reasons ranging from expectations of higher interest rates to geopolitical sabre-rattling over Ukraine in Europe and Taiwan in the western Pacific. But if trust continues to erode, and I see every indication that this will remain the case, then investors should remain cautious. The problem with caution, however, is inflation, which increases the cost of sitting in cash, bonds or low-risk assets. Investors thus face a conundrum.

This month I introduce a possible solution: investing low on the value chain. Read on to learn about the whys and hows of this approach.

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Best regards,

John Butler
Editor, The Fleet Street Letter Monthly Alert

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