Weekly Thoughts 15 October 2021

This morning I spent two hours alone with a fund manager from Marriott. I decided earlier this week that it was time I summoned him to come and have too much coffee (if such a thing is possible) with me so that I could take him through my head again.

We spoke about the year so far and then what they see for 2022. But I was mainly asking what they see from local and global income sustainability and growth point of view going forward – not so much about what they think regarding capital growth/loss. That’s not quite so relevant and there have been uncontrollable factors at play. Then I also had some specific income growth figures and sums that I had been measuring and playing with that I wanted to take him through.

This last quarter has been a flat one for investment values. The Chinese Evergrande property issue is a problem that is not finished. He also explained to me that this past quarter has been about ‘tapering’: a backing off process following a prolonged period of Covid stimuli packages.

Then maybe the Pandora Papers saga is still going to explode……. It sounds like this should also be the title for Frederick Forsyth’s next novel. And then a movie, like the Pelican Brief…….. especially when you look at the lengthy list of people named in it! The list is there – you can find it on Wikipedia.

It’s OK for there to be months, quarters, even years, of flat or depressed market values. If you are not liquidating capital for income, then we all need these periods of time. It allows our monthly contributions – those of us investing monthly via excess income or fund distributions or debit orders and contributions into our retirement annuities, pension funds, discretionary unit trust funds – to sometimes buy into the funds when the underlying companies are on ‘Sale’. So it’s all OK.