“A safe investment is an investment whose dangers are not at that moment apparent.” – Lord Bauer
All investments involve risk. Cash under your mattress (theft or fire), bank accounts, CDs, bonds, stocks… Truly, nothing is safe – yet some risks are less and some are more. Investing is about combining multiple risks together within one portfolio. Perhaps the hardest part of investing is the emotional pull into risk assets like stocks and high yield bonds (usually when the dangers are not at that moment apparent). This time is no different.
This week I share an outstanding piece from GMO’s Ben Inker. He sees two potential investment environments in the immediate future. One he identifies as “purgatory” and the other he identifies as “hell”. Nice. I know. By the way, in this story, I’m rooting for purgatory. Grab a coffee and let’s jump in.
Founder & CEO CMG
Stephen Blumenthal founded CMG in 1992. He is CEO, Chief Investment Officer and portfolio manager at Capital Management Group, Inc. where he manages equity and tactical investment portfolios. He is a frequent speaker and writer on investment strategies and has been featured in various media sources including the Wall Street Journal, Barron’s, Investor’s Business Daily, Pensions & Investments Magazine, Investment News, RIA Biz and Smart Money. He has been a guest on CNBC, Wall Street Journal Live, and Bloomberg. Mr. Blumenthal is a frequent speaker at industry conferences (NAPFA, IMCA, Index Universe, Opal Financial Group Indexing & ETF Summit and NAAIM) and is author of CMG’s popular investment research commentary. With 30 years of investment management and industry experience, prior to founding CMG, Mr. Blumenthal worked for Merrill Lynch Institutional, Merrill Lynch Retail and Prudential Securities.
Mr. Blumenthal graduated with a Bachelor of Science degree in Accounting from Pennsylvania State University. He is married, has three children and is active in his community coaching youth soccer.