Is It Different This Time?

Over the past 20 years, global stock & bond markets have experienced tremendous booms and severe busts as innovation spurred by low rates and aggressive central bank action has led to accelerated growth and rampant speculation.
Text by Stacy Wynn | May 25, 2018 | Lifestyle

At the peak of each boom period in 2000 and 2007, the overriding sentiment that pushed prices to historical levels of overvaluation was summed up by the statement, “It’s different this time.” Each peak had its own unique reason for investors to feel this way, only to learn that things weren’t different at all. As we enter 2015 at new market highs, the “it’s different this time” meme centers around the idea that central banks have finally figured out how to manage the economy and markets via aggressive global policy action. Will 2015 be different? Only time will tell. What has never been different for Sabadell is the idea that preservation of capital and active risk-management are core principles when it comes to building a successful long-term investment strategy for clients. Our approach of balancing capital across a variety of non-correlated asset classes and using a disciplined approach to shift portfolio risk to capture opportunities and avoid undue exposure to extended markets is prudent, wise…and different.

› Malcolm W. Brown is the Wealth Management Director responsible for Portfolio Management in Sabadell Bank & Trust’s Miami Office. He has 20 years of experience in the financial services industry;

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