Despite the record reporting season past and the major wall of cash returned to investors this year, we at Airlie can't help but feel things in markets are a little gloomy. We believe that this is due to two sources of dismay.
- Widespread lockdowns across the country are putting pressure on the real economy.
- Growing noise around "bubble"-like valuations and concerns around inflation.
In cutting through this doom and gloom we think it is important to talk about uncertainty and risk.
It may seem obvious, but it is worth pointing out that uncertainty and risk are different concepts. We think the market is pretty bad at distinguishing between the two and punishes both evenly.
Read the full article on livewire here.