Written by CEO Trust Leader:
The investment management firm Gerstein Fisher hosted the CEO Trust on October 23 for a market and economic discussion. After a generous dinner, John Trezza introduced Chris Meeske, CIMA and Senior Portfolio strategist. Chris provided a broad and insightful overview of market and economic developments. A major theme was the contradictory signals the markets seem to be sending. US large cap stocks have performed pretty well, if a bit choppy, indicating that equity investors have a positive outlook on the economy. The fixed income market, which is much larger than the equity market, is sending a different signal. The tendency to yield curve inversion, or at least flattening, indicates that fixed income investors see economic risk ahead. And gold’s positive performance, unusual when equities are positive, indicate that some market participants are willing to pay up for safety. Chris pointed out that not all these signals can be correct, but how it will resolve itself is impossible to predict and recommends broad diversification.
The discussion was lively. Reflecting the manufacturing interests of several CEO’s in the room, the topic of to where manufacturing will move from China dominated. Pros and cons of India, Vietnam, Brazil, and other countries were discussed.
Thanks again to Gerstein Fisher.