StrongVest Insights

Words of financial wisdom from the StrongVest team

Tag: 2008 Global Financial Crisis

Something’s Gotta Give: High Political Uncertainty vs. Low Financial Uncertainty

by Lewis Johnson, Sub-Advisor, Co-Chief Investment Officer at Capital Wealth Advisors // Mar 29, 2018

“It is too soon to say.” —Chinese Premier Zhou Enlai’s view in 1972 on the 1789 French Revolution (possibly apocryphal) “Within our mandate, the ECB is ready to do whatever it takes to preserve the euro. And believe me, it will be enough.” —Mario Draghi, Head of the European Central Bank (ECB) on July 26, 2012 “The...

The Blind Men and the Elephant: De-Globalization Accelerates as Tariffs Rise

by Lewis Johnson, Sub-Advisor, Co-Chief Investment Officer at Capital Wealth Advisors // Mar 15, 2018

“A group of blind men heard that a strange animal, called an elephant, had been brought to the town, but none of them were aware of its shape and form. Out of curiosity, they said: “We must inspect and know it by touch, of which we are capable.” So, they sought it out, and when...

Feed the Ducks While They Are Quacking: Time to Reduce Lower Quality Bond Positions

by Lewis Johnson, Sub-Advisor, Co-Chief Investment Officer at Capital Wealth Advisors // Jan 25, 2018

Chief Conclusion: Clients will begin to see a thoughtful winnowing of our selected holdings in corporate bonds rated less than investment grade. The relentless search for yield has resulted in a dramatic reduction in the premium that investors once earned by taking more credit risk. The good news is, investors in this lower quality asset...

Research Trip to Ireland Suggests Europe’s Financial Problems Are Not Over

by Lewis Johnson, Sub-Advisor, Co-Chief Investment Officer at Capital Wealth Advisors // Nov 15, 2017

Chief Conclusion: Our recent research trip to Ireland’s “Kilkenomics” Conference strengthens our belief that the recent lull in Europe’s ongoing sovereign debt crisis will prove temporary. Countries that have adopted the Euro as their currency are especially vulnerable to nationalistic populism. Divisive politics are paralyzing governments, disabling them from answering the challenges of their citizens,...

Homage To Catalonia

by Lewis Johnson, Sub-Advisor, Co-Chief Investment Officer at Capital Wealth Advisors // Oct 05, 2017

Chief Conclusion: Catalonia, an autonomous community within Spain, has voted for independence. Spain’s government is cracking down. How will it end and what does it mean for global markets? Our concern is that the global challenge to the political status quo is on particularly explosive grounds in Europe, whose long-festering structural weaknesses have been causing...