2015 was a turbulent year and 2016 has started no less tumultuously. Our monthly comment provides a short review of last year and our views on challenges and opportunities in the year ahead.
There is a need for patience if big profits are to be made from investment. It is often easier to tell what will happen to the price of a stock than how much time will elapse before it happens. There is also the inherently deceptive nature of the stock market. Doing what everybody else is doing at the moment, and therefore what you have an almost irresistible urge to do, is often the wrong thing to do at all.
Philip A. Fisher, adapted from Common Stocks and Uncommon Profits, 1958
2015 proved without doubt to be a turbulent year. Ongoing concerns over China’s economy and the impeding tightening of US monetary policy, heightened geopolitical uncertainty, the collapse in oil prices, the summer drama of a potential Grexit and an unprecedented migrant crisis accompanied by the rise of populist parties, led to heightened volatility as investors tried to navigate through the headlines.