In the land of the blind…

25 Aug

As we look out across the investment opportunities available to investors today, the phrase ” In the land of the blind, the one eyed man is king” keeps rattling around in my head. However, the version that keeps coming back to me again and again is ” In the land of no return, those asset classes with even the slightest hint of return are king”. Whether it is royalty trusts, farmland, MLP’s, or whatever, assets and asset classes whose traditional return profile have hardly made investors giddy have now become the go to investment. Granted, some of these asset classes do possess the benefits of secular shifts (Farmland, pipelines, etc.) but it is clear to us that the reach for yield has morphed into a reach for yield at any price. It  seems like any asset whose income stream can be monetized (and leveraged) is being driven to nosebleed levels.So, what is the proactive investor to do? In our opinion, there has never been a better time to avoid the low level perspective and take the 30,000 foot view. Massive amounts of Central Bank created liquidity will have consequences for currencies and real asset prices. BUY STUFF.

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