Ninety years on from the Wall Street Crash, investors across the US and globally have learned to apply a cautiously optimistic approach to investing. After a period of continued share price growth, it was easy to believe that it could continue forever. When the Depression struck, many were caught out by not a having a strategy in place to succeed in a severe market downturn.
As US managers, we understand many of the arguments about the American market. “It’s all about FANGs” (Facebook, Amazon, Netflix, Google), for example, is something that we hear a lot.
Certainly, the FANG stocks have performed well and led the market higher. However, the US market is the most diverse in the world and has more to offer investors than large technology companies.