Stoic's stoic investment philosophy, with its long-term focus, is a surprisingly refreshing take on a financial world often dominated by the fads of the day. This is likely why the journalists at Het Financieele Dagblad are eager to ask us for our perspective. For example, Stoic partner Freddy Forger shared his opinion on the current volatile stock market in the Financieele Dagblad on January 27, 2022.
At the time of writing (end of January 2022), the prevailing opinion is that stock prices are falling sharply due to rumors of rising interest rates. Because if interest rates rise, saving becomes worthwhile again. And so, more savings will be made at the expense of money invested in stocks. But according to Freddy Forger, that's nonsense. On January 27, we read this article in the FD:
Freddy Forger of asset manager Stoic believes the expected rise in interest rates is far from the only explanation for the significant share price losses. "That's ridiculous to say," he says. He points out that a large group of new investors has emerged since the coronavirus crash on the stock market in March 2020. "Many investors often got in out of boredom, and this group has primarily focused on trendy growth companies, whose share prices have risen four or five times in recent years, even though in many cases they weren't even making a profit. At times like these, the stock market is like an online casino." Given the turmoil on the stock market—due to the conflict between Ukraine and Russia, rising interest rates, and the rise in the microfinance—he believes the sales are mainly coming from new investors. "Now that headwinds are coming, there's no stability, because where is the bottom for such companies that aren't yet turning a profit? Many of these young investors have hit the sell button."
It should be clear by now that Stoic employs the exact opposite investment strategy than the investors Freddy Forger mentions in the FD. In our opinion, absolutely no one can predict stock prices. At Stoic, we don't gamble on trendy growth companies. We base our decisions purely on hard facts. And they tell us: stock prices can bounce around from day to day, but in the long run, the global economy always grows. That's why at Stoic, we simply diversify your assets across the entire global economy. This is not only good for your peace of mind, but especially for your money.
