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Tag: global capitalism
Client Communication Available to All
Firm policy is we don’t share quarterly letters beyond our client base. We consider these communications special and more personal, reserving them only for Hill Investment Group client relationships. We decided that a modified version of the most recent letter could be shared because the lessons are especially relevant to investors at large.
“You know we don’t make forecasts, but we also acknowledge that no one likes total ambiguity regarding what’s to come. This quarter’s letter is a short statement about what respected thought leaders are saying we should expect in the form of future returns, and what you can do about it.”
What is the ‘Market’ Really Made of?
It’s certainly not the “Dow” as Allan Sloan so excellently covered in his recent piece. (You can also find the perfect summary by The Week here.) It’s not even the S&P 500—which is just the 500 largest companies in the U.S. Add in nearly all US, International, and Emerging Market stocks, bringing your total in the neighborhood of 12,000 companies, and then you’ll have a feel for what we call global capitalism. That’s also what we at Hill consider to be the true market. The image above shows the percent that each country represents in world market capitalization as of December 31, 2014. Note where some markets might be much smaller that expected. Even the U.S. only represents 52% of the total, whereas most investors we meet come with portfolios that have little other exposure outside of that.
