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  • Fear and Greed

    Fear and Greed: It is almost impossible in today’s political environment to state a business opinion without it coming off as a political one as well.  While I mostly keep my political views to myself, it is increasingly important to me that I share some of my business/macroeconomic opinions with my clients and the public.

    Bill Gross, the well-respected “Bond King”, has penned yet another warning in his monthly Janus Investment Outlook.  It is a simple, two-page summary of why he believes the Federal Reserve is hurting, more than helping, the U.S. and World economies.  I could not agree with him more.  He sees a bubble growing in the bond markets as asset pricing has gone beyond manipulation with zero and negative interest rates.  He warns of a day of reckoning.

    The Fed’s market manipulation, coupled with the natural human emotion of fear and the selfish desire of greed, means that many investors are probably on the verge of yet another painful market drawdown.  Being an investor, or investment manager, means that we often have to rally against these natural impulses.  It means we need to look beyond our emotions and desires and have the guts to sell when the markets are way up, say, at all-time highs (like now), and have the same fortitude to buy when the market is down and the world feels like it’s falling apart.

    Williams Financial, LLC has rotated most of our strategies into a more conservative approach and we are awaiting a period we believe to be in the not-so-distant future when we will have the opportunity to buy assets (investments) much cheaper.  To read Bill Gross’ September 2016 Investment Outlook, click here.

    James J. Williams
    CEO / Chief Investment Officer
    Williams Financial, LLC