16 June 2016: The slow investment movement

Economic growth should be based on sound economic policies and not be dependent on the interventions of central banks. Divination of decisions made by the Federal Reserve is an ominous sign.

cheapmoneyThese Dutch Guys take a sustainable approach to investing and stock market trading. We consider ourselves leaders of the ‘slow investing movement’. (You haven’t heard of this movement? Same for us. But you have now. We just introduced it.) We only make trades when strictly necessary (on average less than once a month) . And we don’t believe in quick fixes. Lowering interest rates: quick fix. Quantitative easing: quick fix. Central banks to the rescue: quick fix.
In most countries, governments have become too much reliant on the policies of their central banks. Those policies should be supportive to general policies. For almost a decade policies of (supra)national central banks have been the main drivers of economic growth. Growth constructed out of the delusory hopes of cheap money.
Yesterday, we hoped very intensely for the Fed to come up with a firm decision on interest rates. By raising them, the Fed would have sent a clear signal to the world: it is not up to the Fed to be the witch doctor of the global economy. National governments must take their responsibility and come up with proposals which lead to a sustainable growth of their economies.
Once again, it turned out to be too much wishful thinking. A chance wasted to put national governments back in the driver’s seat. We are now a step closer to another economic crisis. Like Sailboats of ice on desert sands.

white raven logo initialsIt seemed quite natural for indexes worldwide to bounce back after a number of sessions in which stocks have pulled back. However, in reaction to the speech by Janet Yellen of the Fed, the NASDAQ lost some more ground today. White Raven, hanging on on to a strategy of going short, welcomed another day of decline. Return for the year improved to almost 18%.

 capital Return since start Return this year Return this quarter
$11,782 +17.82% +17.82% +5.4%
Our initial capital was $10,000 at 1 January 2016. Our average Annual Return is 43%.

TA_v05-smallTim came across some roguish brothers, as captured in the picture below. We’ve heard of the Big Friendly Giant, but this type of gnome is new to us. It is somewhat ambiguous in its bodily expressions, as far as we’re concerned. Who in the real world could it stand for? Any suggestions are welcome: you can leave your proposals in the comments below.

kbouters