Funds Management Industry is feeding you BS

One reason why I keep saying it is a dangerous equity market….

is because of the increasing marketing that I see from the funds management industry telling me how they are on a quest for ‘quality stocks’.

Hmmm……so prior to this declaration, have they have been peddling or investment peoples money in ideas which are rubbish and of low quality?

But now that the party is getting late and some are getting the yips…..perhaps they can go searching for ‘quality’ when stock market is trading toward the upper end of the pendulums arc and invariably ‘quality’ is seldom trading at cheap valuations.

Hey fund managers….your messaging is terrible and dubious.

Maybe their marketing should say, “well, you see we speculated for a while and it worked but we better move money into more recognisable ‘names’ and larger companies, in case that share prices decline, at least we can say we were investing in quality companies”.

My marketing currently says, in the absence of finding a bargain, I’ll hold cash until I find something of value to buy and own.

But ‘they’ can’t say that.

They have indexes to hug, jobs to keep, gravy trains to stay aboard, peers to mimic and fees to charge, all whilst being fully invested……no matter what !

I think that there is value to be found but ‘they’ cant be bothered looking for it or ‘their’ mandate doesn’t allow it or ‘they’ manage so much money that they can’t possibly buy enough of the asset to satisfy their size.

Many continue to be willingly fed BS.

August 13, 2024