Stanford Investment Group, Inc. Hosts Panel Discussion with Industry Experts on the Current Investment Climate

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Stanford Investment Group, Inc. hosted a panel discussion on the current investment climate with industry experts to hear their views on the many forces shaping the U.S. and foreign markets.

We specifically wanted to have a balanced panel so we reached out to experts in the areas of fixed income, currencies and equities.

Stanford Investment Group, Inc. hosted a panel discussion on the current investment climate with Julian Mann, Axel Merk and Brad Sorensen to hear their views on the many forces shaping the U.S. and foreign markets.

Randy Rae, Senior Investment Analyst at Stanford Investment Group, Inc. moderated an interactive discussion on November 9, 2011 at The Four Seasons Silicon Valley with guest speakers: Julian Mann, Vice President of FPA Funds, Axel Merk, President and CIO, Merk Investments LLC and Brad Sorensen, CFA, Director of Market and Sector Analysis Schwab Center for Financial Research.

Randy Rae opened the evening’s presentation with introductory remarks: “We put together a panel of industry experts who will share their thoughts and opinions on the investment markets and the broader economy. We specifically wanted to have a balanced panel so we reached out to experts in the areas of fixed income, currencies and equities.”    

Julian Mann, who provides much of the macro economic research at FPA Funds, offered a summary of the economic and political landscape: “ Until Congress provides long term clarity on taxes, energy, and regulatory regimes, and until the Supreme Court makes a decision on ObamaCare, the FED’s Zero Interest Rate Policy(ZIRP) will continue to harm the economy by drastically shrinking interest income to all savers, retirees, insurance companies, pension funds, and corporate treasury balances. Current consumption is actually being discouraged as the nation’s consumers are de-levering, and must save even more to offset the negative real rates, and the FED’s intent to create inflation.”

Axel Merk, considered to be an authority on currencies stated: “There is no such thing anymore as a safe asset: investors may want to consider a diversified approach to something as mundane as cash. Central Banks diversify their reserves to managed baskets of currencies, and investors should consider doing the same. Due to the uncorrelated nature of the currency asset class and in its upside profit potential, adding a currency component to an investment portfolio may generate positive excess returns, lower a portfolio's standard deviation and thereby enhance risk adjusted returns.”

Brad Sorensen, of Schwab, concluded the presentation on a more optimistic note, “Although it's easy to get caught up in the negative sentiment currently dominating the news, we encourage investors to keep the longer term picture in mind. America has been through tough times before and we believe it will again and suggest that now may be a good time to look at domestic equities for those investors that need to add to their US allocation.” After the panelists’ overview, Randy Rae moderated an engaging question and answer exchange with the audience.

The investment panel discussion was a kick-off event commemorating Stanford Investment Group Inc.’s 30 year anniversary in 2012. Part of Stanford Investment Group, Inc.’s mission statement is to engage, educate and empower clients with information to broaden their knowledge.

Stanford Investment Group, Inc., an independent investment advisor and broker-dealer located in California's Silicon Valley, has 29 years of experience guiding clients through many economic cycles and market changes.

For more information visit the Stanford Investment Group website at: http://www.stanfordinvestment.com

Stanford Investment Group, an SEC Registered Investment Advisor and FINRA member Broker/Dealer, is not affiliated with Stanford University.

For more information on the panelists refer to the websites below:
Julian Mann, FPA Funds: http://www.fpafunds.com
Axel Merk, Merk Investments LLC: http://www.merkfunds.com
Brad Sorensen, Charles Schwab and Co. Inc : http://www.schwab.com

The views, opinions and/or materials presented at the November 9, 2011 presentation are solely those of the speakers and do not necessarily reflect the views or policies of Stanford Investment Group, Inc.

Investing involves risk. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate.

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Joya Whitford
Stanford Investment Group
(650) 941-1717
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