Markets have declined over the past three months. As we know, volatility creates opportunities for long-term investors. Economic turning points like the one we are currently experiencing come with volatility as markets and investors have to adapt to the reality of growth, inflation and rising interest rates. Now is the time to take advantage and buy great companies at marked down prices.
Politics may be in turmoil but the global economy is doing well. It may not be growing quite as fast as last year, but growth, employment and incomes are all still increasing in the US, Europe and China. Inflation is sustained but moderate. Central banks are raising rates at a reasonable pace, striking a balance between growth and inflation.
We have to remember that we have reached this turning point because economies and companies are doing well. Ten years after the financial crisis we can finally feel that we have put the worst behind us even if we are still suffering from its impact in politics and other ways.
Along with the global economy, companies in general are doing well, and none more so than the global leaders we invest in for our portfolios. These companies have the quality and value we look for in everything we do, alongside the opportunity, innovation and pricing power to grow and to offset inflation.