What is happening in the global investment markets? Running Point and its chief investment officer, Michael Ashley Schulman, CFA, were quoted by Reuters in a Global Markets article—by Chibuike Oguh, “Global equities edge up on upbeat earnings, gold falls”—regarding investment market movements and expectations.
For more background, the original statement was much longer and similar to some of what Michael had mentioned in his recent weekly posts:
“When what was recently a bankrupt company, Hertz, is able to place a $4.2B order for 100,000 Teslas for its rental fleets, it exemplifies technology again as an enabler for other industries. Traders see [examples such as] this, relatively strong earnings, and other companies taking advantage of low rates to invest in capital expenditures as positive momentum.
“Although there is no lack of Halloween jitters, if one speaks to businesses, demand is strong, credit is available, supply chain hurdles should eventually get fixed, and there are still millions of people that should join or re-enter the U.S. labor force.
“Additionally, there is a lot of concern about inflation, but not much about the differentiation between good inflation and bad inflation. Good inflation happens when a strong economy grows; bad inflation occurs when an economy or government is weak—we are in a growth recovery environment and that has been our position since government stimulus began in March 2020.
“Equities, private real estate, and private credit tend to do relatively well in an inflationary environment because their asset values also often increase and they can usually raise prices or rates; commodities tend to do well at the outset, but often tumble with the increased supply that inevitably comes with higher prices.”
Disclosure: The opinions expressed are those of Running Point Capital Advisors, LLC (Running Point) and are subject to change without notice. This is not an offer to buy or sell or a security or a recommendation to buy or sell a security. Forward looking statements cannot be guaranteed. Running Point is an investment adviser registered with the U.S. Securities and Exchange Commission. Registration does not imply a certain level of skill or training. More information about Running Point’s investment advisory services and fees can be found in its Form ADV Part 2, which is available upon request. RP-21-44