Things are slowing down, but thats where the opportunity lies
I caught up yesterday with the team at Bloomberg Radio to talk about the global economy and how things are starting to slow down. Let’s face it, we had a big boom following the pandemic and things are now settling down a bit which is a good sign.
Ultra low interest rates create a fake environment. Cheap debt is dangerous and as I explained in my note earlier this week, there’s nothing wrong with rates going back up to where they were before the pandemic.
I’m now completely focused on the opportunities that lay ahead over the next few months. Slowdowns and downturns are a great opportunity to make long term investment decisions, particularly in assets that generate strong income.
As rates go back to more normal levels, income and cashflow will once again become king. Focus on the fundamentals and ignore the noise and newspaper headlines.
