Two key market philosophies we stand by are:
– The saying “this time it’s different”, no its not!
– The cycle lives on, a key learning from Don Stammer which is particularly relevant to Australia given our reliance on resources and agriculture which are both commodities.
The cycle usually meets its conclusion due to the environment which have a negative effect on assets that are overvalued, and we have repeatedly said the biggest risk we see to investment markets are rising interest rates.
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