Friday, 21 June 2013
Our goal is to do everything to protect client purchasing power
How are you protecting your clients against unanticipated inflation and a decline in the dollar?
Our goal is not necessarily to make money so much as to do everything we can to protect client purchasing power and to offset, as much as possible, a large decline in market value in the event of another severe global financial crisis.We not only care about the intrinsic underlying value of our clients’ investments, but we also want to avoid the psychological problem of being down 30 or 40 percent and then being paralyzed.
At this juncture, there are just too many scenarios to enumerate. We have thought about scenarios in which the dollar remains the reserve currency and those in which it doesn’t; those in which gold goes berserk on the upside and those in which it stays flat and then falls, because gold is currently at a record high. All scenarios are worth contemplating. This type of analysis is really very much art and not science